LONDON, (Reuters): Investors poured the most cash into technology stocks since August in the week to Wednesday and doubled the amount they put into cryptocurrencies, according to a report on Friday from Bank of America Global Research.
Inflows into tech stocks, which include the so-called "Magnificent 7" largest companies by market value, such as Apple, opens new tab and Nvidia, opens new tab, reached $4.7 billion, the most since August, putting flows on track for an annualised record of $98.8 billion, BofA said, citing EPFR data.
Crypto inflows rose to $2.4 billion in the latest week, from $1.2 billion the previous week, as investors rushed into exchange-traded funds, helping push bitcoin to within sight of record highs near $69,000.
Investors are growing increasingly confident that the US Federal Reserve will have cut interest rates by the middle of the year, while the economy continues to show resilience, which has ignited a fresh wave of cash into higher-risk assets.
"Fed cuts are sparking 'animal spirits' and a push into riskier assets," BofA said in the report.
Spot bitcoin exchange-traded funds have seen a swell of money flow in during the second half of February, which helped bitcoin secure its strongest monthly gain since December 2020 with a rise of 45 per cent, and smaller crypto ether , its largest monthly rise since mid-2022, up 47 per cent to near $3,500.
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