Tech
Investors Snap Up Tech Stocks, Cryptocurrencies ‘Magnificent 7’: BofA
(Reuters) – In the week ended Wednesday, investors poured more cash into technology stocks since August and doubled the amount invested in cryptocurrencies, according to a report on Friday from Bank of America Global Research.
Inflows into tech stocks, which include the so-called “Magnificent 7” largest companies by market value, such as Apple and Nvidia, reached $4.7 billion, the most since August, putting flows on track for a annualized record of $98.8 billion, BofA said. , citing EPFR data.
Cryptocurrency inflows rose to $2.4 billion in the past week, from $1.2 billion the previous week, as investors rushed into ETFs, helping push Bitcoin to record levels near $69,000.
Investors are increasingly confident that the US Federal Reserve will cut interest rates by mid-year as the economy continues to show resilience, which has triggered a new wave of liquidity into higher-risk assets.
“Fed cuts are unleashing ‘animal spirit’ and a push into riskier assets,” BofA said in the report.
Bitcoin spot exchange-traded funds saw an increase in money flow during the second half of February, which helped bitcoin secure its strongest monthly gain since December 2020 with a 45% increase, and the smallest cryptocurrency, its biggest monthly increase since the middle. -2022, up 47% to nearly $3,500.
According to LSEG data, investors invested $6.21 billion in the 10 largest spot bitcoin ETFs in February, $4.18 billion in the second half of the month.
Emerging market stocks, meanwhile, saw their first outflow since November, down $1 billion, led by a $1.6 billion shift from China-exposed funds, which was the largest outflow. since October, BofA said.
Chinese stocks have rebounded from five-year lows in February, thanks to a series of government stimulus measures to support markets amid a struggling economy.
(Reporting by Amanda Cooper; Editing by Harry Robertson and Christopher Cushing)