Binky Chadha, chief equity strategist at the firm, expects the market to pull back over the next three months before quickly bouncing back up.
Stocks fall sharply after China decides to raise tariffs on $60 billion worth of U.S. goods.
The Federal Reserve may need "several meetings" to get a good read on the U.S. economy, a top monetary policymaker said on Tuesday, a clear signal that the Fed's rate-hike holiday may last for a while.
The Fed will probably need to raise interest rates in December and then three or four times "over the course of next year," Boston Fed President Eric Rosengren said.
Forcing the Fed to hew to a specific rule for setting monetary policy could lead to "large policy mistakes," a U.S. central banker argued.
U.S. government debt yields fell as investors digested economic data and speeches from Federal Reserve leaders.