Bank of America shifts from tech stocks to bonds after midterm sell-off

Bank of America advises investors to favor tech-company bonds over tech stocks following a post-midterm sell-off that erased $2.3 trillion from the Nasdaq 100, with Nvidia falling over 9% and AMD plunging 17%. The bank's chief investment strategist Michael Hartnett cited "peak AI equity concentration" concerns, recommending consumer staples and smaller businesses over market giants. Political resistance to data centers, particularly in Texas where 30% of planned U.S. capacity faces potential delays, threatens the $2.1 trillion global data-center spending forecast. BofA sees a potential recovery if borrowing costs ease without recession, watching for central bank rate pauses, the 10-year Treasury yield below 4.5%, and oil under $80. However, retirement investors face concentration risk as index funds remain heavily weighted toward large tech firms.