Tech
Investors Snap Up ‘Magnificent 7’ Tech Stocks and Cryptocurrencies – BofA
LONDON, March 1 (Reuters) – Investors poured more cash into technology stocks than in August in the week ended Wednesday and doubled the amount they invested in cryptocurrencies, Bank of America Global Research said in a report on Friday.
Inflows into technology stocks, which include the so-called “Magnificent 7,” the largest companies in terms of market value, such as Apple (AAPL.O), opens a new tab and Nvidia (NVDA.O), opens a new tabhit $4.7 billion, the most since August, putting flows on track for an annualized record of $98.8 billion, BofA said, citing EPFR data.
Cryptocurrency inflows have surged to $2.4 billion over the past week, up from $1.2 billion the week before, as investors flocked to exchange-traded funds, helping push bitcoin to all-time highs 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, triggering a new wave of liquidity into high-risk assets.
“The Fed cuts are unleashing ‘animal spirits’ and pushing people into riskier assets,” BofA said in the report.
Spot bitcoin exchange-traded funds saw a surge in inflows in the second half of February, helping bitcoin secure its strongest monthly gain since December 2020 with a 45% surge, and the smallest cryptocurrency ether its biggest monthly gain since mid-2022, rising 47% to nearly $3,500.
According to LSEG data, 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.
Meanwhile, emerging market stocks 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 (.SSEC), opens a new tab staged a recovery from five-year lows in February, helped by a series of government stimulus measures to support markets in the face of a struggling economy.
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Reporting by Amanda Cooper; Editing by Harry Robertson and Christopher Cushing
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