Investors pour into equities to 'chase the bull', says Bank of America

US stocks have seen $38 billion in inflows in the last three weeks, the strongest momentum since Oct. 2022, BofA said, while tech funds have seen $19 billion flow in in the last eight weeks, the strongest momentum since March 2021, reports Reuters.

"We see max SPX 100-150 points upside versus 300 points downside between now and Labor Day," BofA said. "We are not convinced we at start of brand, new shiny bull market."

Citing the same EPFR data, Barclays said the equity inflows were the largest since November last year, with inflows across all sectors except energy.

BofA's bull and bear indicator slipped to 3.6 from 3.7 as slowing inflows to risky bonds offset bullish hedge funds and better credit technicals, BofA said.

A separate set of data showed global equity funds received their largest inflow in 12 weeks.

In the week ended June 14, investors added a net $16.18 billion to global equity funds, nearly offsetting the $17.69 billion in net selling observed a week earlier, according to data from Refinitiv Lipper.