BofA Warns S&P 500 Trending Bubble-Like at 7064 Amid Semiconductor Froth

Bank of America’s global equity derivatives team warns U.S. equities, with S&P 500 near 7064, are shifting to a bubble-like regime fueled by right-tail momentum and frothy semiconductors. Nasdaq-100 has logged 13 straight gains with realized volatility extremes echoing the late-1990s dot-com bubble. BofA recommends riding upside via QQQ May 29 665/700 call spread (pay ~$7.50 for up to 5x payoff) while hedging tail risks with VIX May 24/40 call spread (up to 17x potential). Extreme dynamics in Kospi, Brent, and commodities highlight bifurcation between bullish tech sentiment and crash risks.