Rally in US Big Tech Stocks Looks Stretched, BofA’s Hartnett Says

According to Bank of America strategist Michael Hartnett, the recent surge in the stocks of the "Magnificent Seven" - the top U.S. tech companies - appears to be overextended. The Magnificent Seven, which includes Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla, have seen their share prices rise by 45% since April. Hartnett warned that this rally may be unsustainable and that investors should be cautious. He cited concerns about the potential for a slowdown in economic growth and the impact this could have on the performance of these tech giants. The strategist's comments come as investors continue to closely monitor the performance of the U.S. tech sector, which has been a key driver of the broader market's recovery from the COVID-19 pandemic. While the Magnificent Seven have been among the market's best performers, Hartnett's warning suggests that some caution may be warranted in the near term.