Bank of America is bullish on the long-term performance of Chinese and European stocks, while US tech giants pale in comparison.

Bank of America Corp cited data from EPFR last Friday, indicating that investors continued to pour funds into European stock markets for the week ending last Wednesday, as the region's performance this year has been better than the U.S. stock market. Bank of America Corp strategist Michael Hartnett said, "This is the year of globalization. We are positive on the long-term performance of the stock markets in China and the European Union." The data showed that European stock markets attracted $4.1 billion in fund inflows, marking the largest inflow since the Russia-Ukraine conflict in February 2022. In the past four weeks, fund inflows reached $12 billion, the highest level since August 2015. Overall, stock funds attracted $22.9 billion in fund inflows, with U.S. stock funds attracting $8.5 billion and emerging market funds attracting $2.4 billion. Technology funds attracted $2.6 billion in fund inflows, marking the first inflow in five weeks. Tech stocks have underperformed this year, with the Nasdaq dropping more than 10% from its December high, confirming signs of a correction. Hartnett of Bank of America Corp noted that the seven largest U.S. tech companies - Apple Inc., Microsoft Corporation, Amazon.com, Alphabet Inc. Class C, Meta, NVIDIA Corporation, and Tesla, Inc. - are now referred to as the "Lagnificent 7," as he believes these companies may lose their past allure this year and underperform the market. Bond funds attracted $12 billion in fund inflows, but government bond funds saw outflows of $1.2 billion, the largest outflow in 11 weeks.