Bank of America: Investors favor large tech stocks, short-term interest rates may decrease

According to news from Hashlink, the Bank of America’s August Fund Manager Survey shows that investors are once again flowing into the stock market driven by optimistic earnings performance and improved economic conditions. The choice to 'go long on the seven major tech giants' has become the most concentrated trade, with large tech stocks like NVIDIA and Microsoft particularly favored. The survey covered 169 fund managers, managing a total of $413 billion in assets, with 45% of respondents indicating that this trade is the hottest. Global investor sentiment has reached a new high since February 2025, with 55% of institutions expressing concern about the possibility of a hard landing for the economy. The net allocation to stocks has increased to 14%, the highest so far this year, but still below last year's 49%. Additionally, 78% of respondents expect short-term interest rates to decrease within the next 12 months, with trade wars and inflation seen as major tail risks.