Written by Amanda Cooper
LONDON (Reuters) – Investors poured more money into technology stocks in the week ending Wednesday than any time since August, according to a Bank of America Global Research report released on Friday. has doubled.
Flows into tech stocks, which include the so-called “Magnificent 7” companies such as Apple and Nvidia, reached $4.7 billion, the highest amount since August, with flows at an annualized rate of $98.8 billion. BofA announced that it is on track to set a record. , citing EPFR data.
Crypto inflows rose to $2.4 billion in the latest week from $1.2 billion the previous week as investors flocked to exchange-traded funds (ETFs), with Bitcoin on track for a record high near $69,000. It was pushed up to a level that would allow it.
As the economy continues to show resilience, investors are increasingly confident that the Federal Reserve will cut interest rates by mid-year, sparking new flows into riskier assets.
“The Fed's interest rate cuts are causing 'animal spirits' and encouraging investment in riskier assets,” BofA said in a report.
Spot Bitcoin exchange-traded funds (ETFs) saw heavy inflows in late February, helping Bitcoin rise 45% and secure its biggest monthly gain since December 2020 Ether posted its biggest monthly gain since mid-March. -2022, up 47% to nearly $3,500.
Investors poured $6.21 billion into 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, fell by $1 billion for the first time since November, with a $1.6 billion shift from funds exposed to China, the biggest outflow since October, BofA said.
Chinese stocks have rebounded from a five-year low in February, thanks to a series of government stimulus measures to shore up the market in the face of economic weakness.
(Reporting by Amanda Cooper; Editing by Harry Robertson and Christopher Cushing)
