BofA Sentiment Gauge Hits Most Extreme Bullish Level Since 2021

August 7, 2026

Breaking News

Bank of America strategists say investor optimism has reached such an extreme that it's time to start reducing exposure to risk assets.

The bank's Bull & Bear Indicator climbed to 9.7 from 9.4, its highest level since 2021, according to a team led by Michael Hartnett.

The strategists cited broadening equity markets, strong inflows into high-yield debt, and tighter credit spreads as key drivers of investor optimism.

They now favor defensive assets, saying they can help protect portfolios against potential negative surprises in the economy, monetary policy, and artificial intelligence.

"We remain in the summer Retreat/Rotate, not Reload camp," Hartnett said. "We recommend investors retreat from risk assets and/or rotate into some defensives, duration, and the U.S. dollar."

The warning comes as investors piled back into semiconductor stocks following upbeat earnings, easing concerns that the AI rally was losing momentum. Sentiment has also been supported by strong corporate earnings in both the U.S. and Europe. Yahoo Finance reports.

EdgeUp

👷 Jobs Data Live Updates: Mixed Labor Data Sets the Stage for Friday's Key Jobs Report

Friday's U.S. jobs report is expected to provide fresh insight into the health of the labor market, with July payrolls projected to improve from the previous month.

Economists surveyed by Bloomberg expect the unemployment rate to remain unchanged at 4.2%, just below its July 2025 level, while the economy is forecast to add 80,000 jobs.

That would mark an improvement from June's 57,000 jobs, which fell well short of expectations, but would still represent a slower pace of hiring than earlier this year. Yahoo Finance reports.

🏡 Airbnb Stock Soars 9% on Earnings and Revenue Beat, Strong Guidance for Third Quarter

Airbnb reported second-quarter results that topped analysts’ estimates and issued a better-than-expected forecast for the current quarter, citing strong demand across all regions.

The stock jumped 9% in extended trading on Thursday.

Revenue climbed 17% year over year to $3.1 billion, while net income increased to $816 million from $642 million, or $1.03 per share, a year earlier. CNBC reports.

🛰️ SpaceX Stock Got Cut in Half, but Retail Investors Keep Piling In: Chart of the Day

Retail investors have bought SpaceX shares every day since the company's IPO, and the stock's post-earnings plunge only encouraged more buying.

Individual investors purchased a net $22.7 million of SpaceX stock during the first hour of trading on Wednesday, according to Vanda Research.

That was more than three times the stock's average opening-hour inflow and marked its third-largest opening-hour buying spree across 37 trading sessions. Yahoo Finance reports.

🧠 AMD Buys Chip Startup That Hardwires AI Models Into Its Silicon

Advanced Micro Devices (AMD) is counting on its graphics processing units (GPUs) to drive the bulk of its data center growth as cloud companies continue snapping up advanced AI chips.

But as the generative AI boom approaches its fourth anniversary, it has become increasingly clear that GPUs aren't the ideal solution for every AI workload.

On Thursday, AMD announced an agreement to acquire Taalas, a Toronto-based startup that develops AI inference chips. Unlike general-purpose processors, Taalas' accelerators are custom-built for a single AI model, aiming to deliver greater efficiency for inference workloads. CNBC reports.

📱 The 72-Hour Crisis That Could Upend Meta’s Business in India as Firm Risks Losing Legal Protection

Tensions are rising between Meta Platforms and Indian regulators after the company faced two major controversies in quick succession.

The tech giant briefly restricted a Facebook post by Prime Minister Narendra Modi addressing students during the Gen Z protests in July, just days after regulators summoned the company over concerns about child-abuse content.

While Meta later said the restriction was the result of an “error,” the post initially indicated it had been blocked due to a “legal request.” CNBC reports.

🛢️ Crude Oil Supplies at 45-Year Low

U.S. crude oil supplies have fallen to a 45-year low as the Iran war continues to weigh on the country's strategic reserves.

According to Bank of America Global Research, the U.S. Strategic Petroleum Reserve is at its lowest level since 1983, leaving the country with approximately 43 days of crude oil supply, according to data reported by the Associated Press. Yahoo Finance reports.

🚗 Volkswagen Controlling Families Call for Faster Overhaul to Fend Off Chinese Rivals

Volkswagen’s top investor and controlling family shareholders on Friday issued their clearest message yet to management as the German auto giant considers what could become the most radical overhaul in the company’s 89-year history.

Europe’s largest automaker has confirmed it is considering cutting up to 100,000 jobs — twice as many as previously indicated — as it battles a profit slump, billions of euros in tariff-related costs, and intensifying competition from Chinese automakers. CNBC reports.

Top 5 Movers in Early Pre-Market

(All pricing and percent gains are based on Early Pre-Market from 4:00 AM to 7:00 AM ET). Stock Analysis reports.

1) MB: MasterBeef Group
Total gain: +257.33%

2) NAMI: Jinxin Technology Holding Company
Total gain: +124.06%

3) DOCS: Doximity, Inc.
Total gain: +91.19%

4) VATE: INNOVATE Corp.
Total gain: +73.41%

5) DSY: Big Tree Cloud Holdings Limited
Total gain: +57.68%

Yesterday’s Biggest Movers

The closing price of the top three market percent gainers trading near or above $3 on August 6.

(All pricing and percent gains are based on regular market trading hours from 9:30 AM to 4:00 PM ET) Stock Analysis reports.

1) WYHG: Wing Yip Food Holdings Group Limited
Total gain: +194.22%
The stock appeared to be moving on no notable news.

2) CLRO: ClearOne, Inc.
Total gain: +166.30%
The stock appeared to be moving on no notable news.

3) BRVE: Braveheart Bio, Inc.
Total gain: +65.56%
The company announced the pricing of its upsized initial public offering of 21,250,000 shares of its common stock at a public offering price of $18.00 per share. The shares are expected to begin trading on the Nasdaq Global Market on August 6, 2026 under the ticker symbol “BRVE.” The offering is expected to close on August 7, 2026, subject to the satisfaction of customary closing conditions. All shares of common stock are being offered by Braveheart Bio. Globe Newswire reports.

Today’s Notable Earnings

(Estimate and Actual numbers represent Earnings Per Share in US Dollars)

DOUG: Douglas Elliman
Q2 2026
Before Market Open
Estimate: N/A
Actual: N/A

AIXC: AIxCrypto Holdings
Q3 2026
After Market Close
Estimate: N/A
Actual: N/A

GRVY: GRAVITY Co
Q2 2026
Before Market Open
Estimate: N/A
Actual: N/A

Today’s Economic Dates

Time (ET) / Report / Period

8:30 AM - Employment Report - July
8:30 AM - Unemployment Rate - July
8:30 AM - Avg Hourly Earnings, M/M% - July

Parting Thoughts

“Investing is where you find a few great companies and then sit on your ass.”

– Charlie Munger

Sourced in: Poor Charlie's Almanack.

Disclaimer

TradeZero America, Inc., a United States broker dealer, registered with the Securities and Exchange Commission (SEC) and member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC); TradeZero, Inc., a Bahamian broker dealer, registered with the Securities Commission of the Bahamas ; TradeZero Canada Securities ULC, a Canadian broker dealer, member firm of Canadian Investment Regulatory Organization (CIRO) and member of the Canadian Investor Protection Fund (CIPF); and TradeZero Europe B.V., a Dutch broker dealer, authorized and regulated by the Dutch Authority for the Financial Markets (AFM) (collectively, the “TradeZero Broker Dealers”).

TradeZero Broker Dealers offer self-directed electronic securities trading to their customers. TradeZero Broker Dealers do not provide financial or trading advice and do not make investment recommendations to their customers. This communication does not constitute an offer to sell or a solicitation to buy any security or instrument which it may reference.

The information in this newsletter summarizes the latest market activity and related news and are provided for educational purposes only. Any trading symbols displayed are for illustrative purposes only and do not constitute a recommendation by TradeZero to buy, sell, or hold any investment. This material is not intended to provide investment advice or to take into account any individual’s financial condition, investment objectives, or requirements.

Investing involves risk, including the possible loss of principal.

There is a risk of loss in online trading of securities including equities and options. Trading on margin is for experienced investors whereby the loss can be greater than your initial investment. Likewise, short selling as a securities trading strategy is extremely risky and can lead to potentially unlimited losses.

Options trading is not suitable for all investors as it can involve risk that may expose investors to significant losses. Please read the Characteristics and Risks of Standardized Options, also known as the Options Disclosure Document (ODD) at OCC.

Stocks experiencing significant price volatility may involve substantial risk. Past performance is no guarantee of future results.

Any trading strategies discussed are for educational purposes only and should not be construed as investment advice or a recommendation.

Certain information herein has been obtained from third-party sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. The views and opinions expressed are those of the author and do not necessarily reflect the views or opinions of TradeZero, its affiliates, or employees.

If you have any specific questions about TradeZero's brokerage services, please reach out to the TradeZero Broker Dealer servicing your jurisdiction.