Bank of America flags bubble signal as tech stocks and volatility surge

5 articles · Updated · Bloomberg · Apr 24

Bank of America strategists highlight that the Nasdaq 100 Index has seen rising prices and 10-day realized volatility together for 14 of the last 16 days.
This pattern departs from the historical norm, where volatility typically decreases as stock prices climb, raising concerns of a potential market bubble reminiscent of the dot-com era.
The warning comes amid a record-breaking rally in technology megacaps, prompting increased scrutiny of market stability and investor risk appetite.

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