Tech Stocks Face "Trouble" Despite Inflows, Warns BofA

BofA Global Research warns of potential trouble ahead for technology stocks in the second half of the year, despite the sector experiencing its largest inflow in 10 weeks. The strategists at BofA point to the correlation between central bank liquidity and the performance of the tech-heavy Nasdaq Composite over the past 15 years. Although central bank balance sheets have decreased by $3 trillion, the Nasdaq continues to seek new highs. BofA suggests that the tech sector may face challenges in the coming months, rather than entering a new era of AI dominance.