BofA Warns of SpaceX (SPAC) and OpenAI IPO Risks for Tech Sector

AI Summary

Bank of America (BAC) strategist Michael Hartnett stated that upcoming initial public offerings for SpaceX and OpenAI could elevate the technology sector's weight in the S&P 500 beyond the historical 48% peak seen during previous market bubbles. SpaceX is projected to debut on June 12 with a valuation of approximately $1.75 trillion, pricing around $75 billion in shares. The concentration of major stocks poses potential risks for investors, especially given that technology already makes up over 44% of the index. Such anomalies could lead to significant market corrections, putting pressure on diversified portfolios.