BofA strategist Michael Hartnett stated that $8 trillion in cash will not be deployed without Federal Reserve interest rate cuts. This comes as money market funds attracted $166.4 billion last week, marking the largest inflow since April 2020. Hartnett emphasized, "No rate cuts, no cash cuts," indicating that sustained Fed cuts are necessary to unlock this sidelined capital.

BofA's key market calls include:
Stocks: Risk-off into midterms; potential 10% move either way.
Tech: Avoid adding exposure; the Magnificent Seven are expected to outperform semiconductor stocks.
Bonds: Begin buying 30-year Treasuries, anticipating a peak in yields.
Small Caps & REITs: Selective buying opportunities are present.
Gold & Commodities: Maintain long positions.
Emerging Markets: Stay long, with China tech looking particularly interesting.
Market Breadth: 50% of global indexes are currently trading below key moving averages.

The BofA Bull & Bear Indicator has decreased to 8.1 from 8.8, remaining in "sell" territory.