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BofA Says Tech Stocks Are at Risk Even as Inflation Shock Over

  • Bank sees FAANG dominance giving way to ‘new leadership’
  • Inflation to fall but remain above 20-year average: Hartnett

A long-awaited cooling in US inflation should be good news for tech stocks. Bank of America Corp. strategists say otherwise.

Although an “inflation shock” -- the main market narrative of 2022 -- is now over, a sharp rise in services and wage costs will continue to weigh on the growth shares, strategists led by Michael Hartnett warned. They expect the so-called FAANG group of companies to underperform in the next few years.