A team of Bank of America analysts led by Michael Hartnett said yesterday that technology funds experienced a net outflow of approximately $4.4 billion in the week ending March 6, marking the largest weekly fund outflow in history. However, they still believe that there is significant upside potential for tech stocks.
Amidst the enthusiasm surrounding the artificial intelligence (AI) boom and expectations of interest rate cuts by the Federal Reserve, US stocks have reached new highs this year. Nvidia, one of the “Big Seven” stocks in the US market, saw its stock surge by 16.4% on February 23, bringing its market value close to $2 trillion and driving global stock markets to new heights.
According to a report from Bank of America analysts, citing data from EPFR Global, technology funds saw a net outflow of approximately $4.4 billion in the week ending March 6, setting a record for the largest weekly fund outflow in history.
Hartnett also commented on the 25% rise of the S&P 500 index since the end of October last year, describing it as a phenomenon where there is still room for tech stocks to rise. However, despite acknowledging that the current stock market is overheated and the widening gap between different tech stocks, such as Nvidia hitting new record highs while Apple and Tesla have fallen by 12% and 28% respectively this year, Hartnett still believes that there is significant upside potential for tech stocks.
Similarly, Goldman Sachs analyst Ben Snider also holds a relatively optimistic view on the S&P 500.
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