Bank of America’s trading desk is advising clients to purchase US momentum stocks, betting that the sector has reached an attractive entry point after a recent wave of profit-taking.
The bank’s basket of US momentum names closed the previous session at levels that traders view as a potential short-term floor, marking a shift from the cautious stance seen earlier in the week.
The call to buy comes as other major institutions echo similar sentiment.
UBS’s trading desk has also identified opportunities to rebuild positions in artificial intelligence and semiconductor stocks, suggesting that the recent pullback in high-growth tech names may be nearing its end.
This coordinated view from major Wall Street desks indicates a growing belief that the selling pressure on momentum assets has been largely priced in.
This development follows earlier analysis from Bank of America, which noted a significant reallocation of capital within global financial markets and warned of potentially softer investor sentiment during the summer months. The current advice to buy momentum stocks suggests that traders are now looking to capitalize on the dip rather than retreat further, despite the broader seasonal headwinds.