Bank of America predicts that a recession will put an end to the Big Tech rally

Bank of America experts warn that the record growth in technology stocks in 2023 could be disrupted by a recession. While the Nasdaq has already risen 18% since the start of the year, the Federal Reserve, which is aiming to bring inflation down to its 2% target, will likely continue to raise interest rates to reach that target. Bank of America analyst Michael Hartnett predicts a recession that could lead to the collapse of technology companies, as it did in 2008. However, investors continue to pour money into technology stocks, waiting for the Fed to cancel the campaign to raise interest rates, and hoping for an increase in the companies' future cash flows. But, according to Hartnett, one should not forget the gloomy outlook for the US economy, which is already facing a credit crisis due to the collapse of regional banks.