BofA Watches Tech for Signs Investors Are Souring on US Stocks

The Nasdaq 100 is approaching a level versus the S&P 500 that could trigger the unwinding of the trade favoring US equities, according to Bank of America Corp. strategists.

Relative pricing for the tech-heavy index over the S&P 500 is holding above a high reached in 2000, “keeping investors comfortably long US tech stocks and US dollar,” said a BofA team led by Michael Hartnett. A crack below that level would be a strong catalyst for rotation out of “US exceptionalism” trades, they wrote in a note.