Bank of America Hartnett on capital flows: rate cut expectations become key variable
智通财经2026/10/09 12:07(1) Hartnett from Bank of America pointed out that money market funds saw net inflows of approximately $166 billion last week, marking the largest weekly inflow since April 2020 and indicating that a large amount of capital remains on the sidelines. (2) Hartnett emphasized that without sustained interest rate cuts from the Federal Reserve, this cash is unlikely to move into risk assets easily — in other words, "no rate cuts, no deployment of cash." (3) In terms of equities, Bank of America recommends maintaining a defensive stance before the midterm elections, with the market potentially fluctuating around 10% in both directions. (4) For the technology sector, Bank of America suggests not increasing positions at this time and believes that tech giants will outperform the semiconductor sector. (5) In bonds, Bank of America advises buying 30-year US Treasuries once yields have peaked. (6) Regarding small-cap stocks and REITs, Bank of America sees selective buying opportunities. (7) For gold and commodities, Bank of America recommends continued holding. (8) In emerging markets, Bank of America also recommends holding and sees the Chinese technology sector as worth watching. (9) In terms of market breadth, about half of global stock indices have fallen below key moving averages. (10) Bank of America's Bull & Bear Indicator dropped from 8.8 to 8.1, still in the sell zone. (11) Overall, market sentiment remains cautious, with fund flows closely tied to rate cut expectations. Further attention should be paid to the Federal Reserve's policy path and market concerns triggered by Trump's tariff-related remarks.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Correction-BUZZ-Reports say Lumentum's optical communication products for AI servers are sold out until 2029, driving its stock price higher
Correction on point 4: Nvidia separately invested $2 billion each in Lumentum and Coherent, rather than a combined investment. October 9 – Shares of photonics product manufacturer Lumentum (LITE.O) surged 6.4% in pre-market trading to $1,114.54. According to Bloomberg, the CEO of LITE stated that as tech companies seek faster AI data center infrastructure, the company's optical device orders are fully booked through early 2029. CEO Michael Hurlston said that by 2027, LITE will be unable to fulfill about 70% of demand for certain products, and by 2028, about 30% of demand for other products will still not be met. Lumentum and its peer Coherent (COHR.N) each received a $2 billion investment from the AI leader Nvidia (NVDA.O) earlier this year. COHR shares recently rose 4.9% in pre-market trading. As of Thursday's close, Lumentum shares have gained 184.5% year-to-date.
Indonesia raises the price of Minas crude oil to $115.97 per barrel in September
Indonesia has raised the September Minas crude oil price to $115.97 per barrel.
INE crude oil futures main contract drops 1.55%, quoted at 729.8 yuan/barrel
The main contract of China's INE crude oil futures has just surpassed the 730.0 yuan/barrel mark, with the latest quote at 729.8 yuan/barrel, down 1.55% intraday.
INE crude oil futures surpass 740 yuan/barrel, Shanghai fuel oil surpasses 5,100 yuan/ton
The main contract of China's INE crude oil futures has just broken through the 740.0 yuan/barrel mark, now quoted at 740.3 yuan/barrel, down 0.13% intraday; Shanghai fuel oil futures have just broken through the 5100 yuan/ton mark, now quoted at 5102 yuan/ton, up 0.35% intraday.
Crypto prices
More
