BofA: Tech rally to overcome high-rate headwinds

This historical framing suggests that for the current tech rally to break, the macro shock would need to exceed the severity of past yield and rate cycles—a high bar that may not be met by gradual inflation persistence. The implication is that equity market dynamics, particularly momentum and earnings expectations, can decouple from bond market signals for extended periods. The key variable to watch is whether any upcoming data or policy shift crosses that 'extremely high bar,' or if the market's tolerance for higher-for-longer rates erodes as the late-1990s analogy ages. For now, the takeaway is that macro headwinds alone may be insufficient to reverse tech leadership, but the comparison also underscores how regime shifts, when they come, can be abrupt.