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Financial institution of America Shoppers are Shopping for the Tech Pullback

© Reuters. Bank of America Clients are Buying the Tech Pullback

By Senad Karaahmetovic

Bank of America (NYSE:) strategist Jill Carey Hall noted that the bank’s clients were buying US equities last week when the fell 3%.

Clients were mostly buying large caps with retail and institutional clients leading the activity while hedge funds were net sellers.

“Clients were buyers of stocks in seven of the 11 sectors. Tech and Consumer Discretionary – two of last week’s three worst performing sectors – saw the biggest inflows for the second consecutive week,” Carey Hall told clients in a note.

This way, the Tech sector currently has the longest buying streak while Financial and Communication Services recorded the largest outflows last week.

As far as buybacks are concerned, they decelerated slightly vs. the prior week.

Elsewhere, BofA economist Stephen Juneau is growing “increasingly pessimistic about next year as key inflation indicators continue to hint at a larger persistent component, and severe overheating in the labor market continues.”

“This suggests that the Fed will have to push the unemployment rate up in 2023 and 2024. The market is also starting to respond to the Fed’s message, with the kind of financial tightening needed to eventually “achieve” that near-zero growth outcome by late next year,” the economist told clients in a separate note.

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