Bank of America warns of market volatility risk due to excessive investor complacency, $14.2B equity fund outflows, and rising Treasury yields and commodity prices.
Macro & Markets ·
Bank of America flagged what it characterizes as excessive investor complacency amid market conditions that could trigger sharp volatility swings. The institution reported $14.2 billion in outflows from U.S. equity funds over three weeks, the largest withdrawal since January 2026, while Treasury yields have risen and oil prices have climbed above $100 per barrel alongside record diesel price increases. BofA attributed the volatility risk partly to a combination of elevated commodity and bond prices alongside a lack of decisive policy response.