The Bank of America (BofA) monthly fund manager survey indicates that owning large U.S. tech stocks, particularly the 'Magnificent 7' group, is currently the most popular trade among investors. Approximately 45% of the surveyed asset managers, managing $413 billion in assets, identified this trade as the most crowded, reflecting a strong recovery in investor sentiment following a selloff earlier in the year. The survey highlights a significant shift in market dynamics, with many investors optimistic about the earnings potential of these tech giants, including Nvidia and Microsoft.

The survey results also reveal a broader trend of improved investor sentiment, with only 5% of asset managers anticipating a hard economic landing. This optimism is reflected in a net 14% of respondents being overweight in global equities, the highest level since February. The resurgence of interest in the 'Magnificent 7' stocks suggests a potential for continued growth in the tech sector, driven by strong earnings reports and a favorable economic outlook.