A team of analysts led by Michael Hartnett from a US bank stated yesterday (9th) that technology stock funds had experienced an outflow of approximately $4.4 billion in the week ending March 6th, marking the largest weekly fund outflow in history. However, they still believe that there is significant upside potential for technology stocks.
Amidst the AI boom and optimism surrounding expected interest rate cuts by the Federal Reserve, the US stock market has reached new highs this year. One of the “Big Seven” stocks, chipmaker Nvidia, saw its stock surge by 16.4% on February 23rd, approaching a market value of $2 trillion and driving global stock markets to new highs.
According to a report by the Bank of America analyst team, led by Michael Hartnett and citing data from EPFR Global, technology stock funds experienced an outflow of approximately $4.4 billion in the week ending March 6th, setting a record for the largest weekly fund outflow in history.
Hartnett also commented on the S&P 500 index, which has risen 25% since the end of October last year, describing it as an indication that there is still room for growth in technology stocks.
However, while Hartnett believes that the current stock market is overheated and the gap between different technology stocks is widening, such as Nvidia reaching new all-time highs while Apple and Tesla have declined by 12% and 28% respectively this year, he still believes that technology stocks have significant upside potential.
Additionally, Goldman Sachs analyst Ben Snider also holds a relatively optimistic view on the S&P 500.
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