Strategists at BofA International Analysis see second-half “bother” for expertise shares even because the sector took in its largest influx in 10 weeks, the agency stated in a observe on Friday.
The tech-heavy Nasdaq Composite has gained 28% this 12 months, fueled by megacap shares and pleasure over the enterprise potential of synthetic intelligence.
BofA pointed to the correlation between a surge in central financial institution liquidity and the Nasdaq over the previous 15 years.
However central financial institution steadiness sheets are down $3 trillion “but Nasdaq needs new highs,” the strategists led by Michael Hartnett stated in a observe.
“We are saying tech = H2 bother slightly than period of recent AI guidelines,” BofA stated within the observe.
Within the newest weekly information, the tech sector noticed a $2.3 billion influx, its largest influx in 10 weeks, BofA stated.
Extra broadly, buyers fled equities within the week to Wednesday however continued placing their money into bonds as yields surged, BofA stated, citing EPFR information.
BofA famous a $6.1 billion outflow from equities and a $600 million influx into bonds.
The U.S. Treasury market, the place borrowing prices have shot up essentially the most this month delivering losses to buyers, noticed its twenty eighth week of consecutive inflows, BofA stated, the longest streak since 2010.
Rising markets debt in the meantime misplaced out, BofA stated, seeing the biggest weekly outflow because the collapse of Silicon Valley Financial institution in March.
Supply: Reuters (Reporting by Lewis Krauskopf in New York and Yoruk Bahceli in Amsterdam; enhancing by Dhara Ranasinghe and Alistair Bell)