TechFlow news, on February 7, according to Jinshi News, Bank of America strategists expect that after the sustained rally in U.S. equities halted at the beginning of 2025, its leading advantage will continue to erode. Strategists including Michael Hartnett pointed out that year-to-date, stock markets in Brazil, Germany, the UK, China, and Canada have delivered higher returns than the S&P 500, as the so-called Magnificent Seven tech companies failed to provide the long-standing momentum they previously offered. They recommend going long on Chinese equities, anticipating that trade and technology tensions will not escalate.
On the bond front, Bank of America expects U.S. Treasury yields to fall below 4%, as President Trump seeks to address government spending issues, curb the debt spiral, and gain congressional approval for his tax reduction plans.
