“We are long Main Street, short Wall Street until Trump approval rating up on policy pivot to address affordability,” they wrote in a note. Investors have recently driven a rotation out of tech stocks amid concerns around a disruption from artificial intelligence. According to BofA, the flip from asset-light to asset-heavy business models suggests there is a “major threat” to the market leadership of the so-called Magnificent Seven technology stocks. They note that AI capex spending from the biggest technology stocks is estimated at about US$670 billion, or 96% of cash flows, this year. “No longer the best balance sheets, no longer the biggest stock buybacks,” they said.

Source: The Edge Markets February 06, 2026 12:51 UTC