Bank of America warns that the AI surge and inflation are pushing the market to dangerous levels; suggests exiting in early June.

According to the latest Flow Show report released on May 15 by Bank of America Chief Investment Strategist Michael Hartnett, enthusiasm for AI, rising inflation, and “chasing” capital inflows are driving the market into dangerous territory.

Hartnett noted that US PPI rose to 6% year-over-year, CPI rose to 3.8% year-over-year, and both were above expectations.

If inflation keeps pace at the current rate over the coming months, US CPI could exceed 5% before the mid-term elections in November.

Hartnett considers CPI above 4% to be a key risk threshold and cited historical data: when inflation is above 4%, the S&P 500 averages a 4% drop within 3 months and a 7% drop within 6 months.

Bank of America’s bullish-bearish indicator has risen to 7.6, nearing the sell-signal range near 8.0.

The semiconductor index (SOX) is 62% above its 200-day moving average, exceeding levels seen during the internet bubble.

Globally, stock funds recorded inflows of $20.5 billion last week, while crypto funds saw outflows of $1.3 billion— the largest weekly outflow since February 2026. #Gate广场五月交易分享