According to Bank of America, a substantial increase in equity investments reveals that investors are not deterred by concerns about tariffs. The bank's analyst, Michael Hartnett, reported that US equities experienced the largest weekly inflow of the year.

Hartnett noted that global investors are showing confidence in US and global equities, as indicated by the significant inflow of funds into the stock market. Despite worries about a potential economic downturn and bear market triggered by the Trump administration's tariff policies, investors are actively putting money into stocks rather than expressing panic.

Even though recent fears of inflation and economic instability have been escalating, the data suggests a different sentiment among investors. In addition to the record weekly inflows, there has been a notable surge in stock purchases among the bank's clients over a two-week period.

The looming deadline for the next round of tariff announcements on April 2 has created market sensitivity. Hartnett recommended seeking security in bonds and gold to protect against the uncertainties posed by tariff concerns, labeling it a "tariff pandemic."

Stock investors have been influenced by two major developments in the first quarter: the Department of Government Efficiency (DOGE), aiming to cut federal spending, and the introduction of China's DeepSeek AI technology. These factors have shaped investor sentiment, with concerns about mounting debt levels in Washington and the increasing competition from China in the field of competitive AI.