"Too Many Red Flags": BofA Tells Clients To "Take Profits" Amid Spike In Dot Com Bubble Similarities

After Friday's tech-led rout, Wall Street strategists are divided on what comes next: some of Wall Street’s biggest banks are looking past the selloff, telling clients to buy the dip as earnings growth should support stocks through the end of the year. Others are more skeptical and warning clients to take profit amid "too many red flags."

The historic AI-related rally on Wall Street came to an abrupt halt after nine weeks, as tech stocks fell sharply. The Philadelphia Stock Exchange Semiconductor Index clocked its biggest drop since 2020, plunging over 10% in one session - its worst day since March 2020 and the fourth-worst session since data for the index is available in 1994 - in a move some have called a "Red Sox." Notably, the five worst days for the SOX now include two from 2000, two from 2020, and now one from 2026.