By Senad Karaahmetovic

Bank of America (NYSE:) strategist Jill Carey Hall noted that the bank’s clients were buying US equities last week when the fell 3%.

The activity was led by institutional and retail clients who were the majority of those buying large caps, while hedge funds were net purchasers.

“Clients were buyers of stocks in seven of the 11 sectors. Tech and Consumer Discretionary – two of last week’s three worst performing sectors – saw the biggest inflows for the second consecutive week,” Carey Hall told clients in a note.

These trends mean that the Tech sector is currently on the longest buying run, with Financial and Communication Services recording the highest outflows in the last week.

Concerning buybacks, the pace of them decreased slightly from last week.

Elsewhere, BofA economist Stephen Juneau is growing “increasingly pessimistic about next year as key inflation indicators continue to hint at a larger persistent component, and severe overheating in the labor market continues.”

“This suggests that the Fed will have to push the unemployment rate up in 2023 and 2024. The market is also starting to respond to the Fed’s message, with the kind of financial tightening needed to eventually “achieve” that near-zero growth outcome by late next year,” the economist told clients in a separate note.