Deutsche Bank chief U.S. equity strategist said Wednesday he sees "significant downside risk" for the U.S. stocks this summer as interest rates remain low and a resurgent dollar threatens to derail crude oil's rally.
"I am very concerned about the market for this summer. ... I think the likely falls to something like 1,950, perhaps lower," David Bianco told CNBC's "Squawk Box."
The S&P rebounded nearly 2 percent to 2,036 on Tuesday after global markets shed $3 trillion in the wake of the British vote to leave the European Union last week.
The vote is seen complicating the U.S. Federal Reserve's plan to raise interest rates this year.
While low interest rates support stock multiples and equities that serve as bond proxies, they are also a "massive challenge" to the financial sector, Bianco said. Low rates make it more difficult for banks to earn money from lending.
The market is also grappling with currency uncertainty following the Brexit vote, Bianco said. If the dollar strengthens, it will be difficult for oil prices to climb to materially higher levels, he said.
A stronger greenback makes dollar-denominated crude more expensive to holders of other currencies. Oil and gas drillers and service companies have been slammed by a nearly two-year oil price rout.
Paul Hickey, co-founder of Bespoke Investment Group, noted that while crude prices pulled back following the Brexit vote, they have not been crushed, despite renewed dollar strength.
U.S. crude settled 3 percent higher on Tuesday following a 7.5-percent decline in the previous two sessions after the U.K. referendum.
On the Fed front, Hickey does expect policymakers to be dovish on rates and said the United States could become a safe haven given the British vote's impact on the pound, which fell to a 30-year low after the referendum.
"When you have one of the largest economies in the world see their currency drop like an emerging market currency, people are going to shift capital out of those areas," he told "Squawk Box."
In Hickey's view, the pound move makes emerging market assets more attractive.
Bianco said he is waiting for more downside in European assets before he views the continent opportunistically. For the moment, he advised holding cash to keep one's options open.
Nandini Ramakrishnan, global market analyst at JPMorgan Asset Management, said Britain's could be a near-term beneficiary because the lower pound is a boon to the many multinationals in the index.
However, she cautioned that uncertainty in global markets will persist as the British government reshuffles in the coming months and the U.K.'s potential exit from the European Union proceeds.