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Investors snap up ‘Magnificent 7’ tech and crypto stocks: BofA
(Reuters) – Investors poured the most cash into tech stocks since August in the week leading up to Wednesday and doubled the amount they invested in cryptocurrencies, according to a report released on Friday by Bank of America Global Research .
Inflows into tech stocks, which include the “big 7 companies” by market value such as Apple and Nvidia, reached $4.7 billion, the highest since August, which would put them on a path to ‘a record annualized $98.8 billion, BofA said. , citing EPFR data.
Crypto inflows reached $2.4 billion last week, up from $1.2 billion the week before, as investors rushed to exchange-traded funds, helping to push bitcoin towards ‘a record close to $69,000.
Investors are increasingly confident that the US Federal Reserve will have cut interest rates by mid-year as the economy continues to show resilience, sparking a new wave of liquidity towards riskier assets.
“Fed cuts are sparking ‘animal spirits’ and a push toward riskier assets,” BofA said in the report.
Spot Bitcoin exchange-traded funds saw money pour in during the second half of February, helping Bitcoin achieve its biggest monthly gain since December 2020 with a 45% rise, and a smallest crypto ether, its biggest monthly rise since mid-February. -2022, up 47% to nearly $3,500.
Investors invested $6.21 billion in the 10 largest spot Bitcoin ETFs in February, and $4.18 billion in the second half of the month, according to LSEG data.
Emerging market stocks, meanwhile, saw their first outing since November, down $1 billion, due to a $1.6 billion withdrawal from funds exposed to China, accounting for the largest release since October, BofA said.
Chinese stocks have seen a recovery from a five-year low in February, thanks to a series of government stimulus measures aimed at supporting markets in the face of a struggling economy.
(Reporting by Amanda Cooper; editing by Harry Robertson and Christopher Cushing)