Has the day come to an end when technology giants "crush" bank stocks?

Recently, technology stocks in the US stock market have soared, while financial stocks have plummeted, and the gap between the two is becoming increasingly apparent.

According to data from Bank of America, about $4 billion flowed into technology funds last week. This is the highest level since the end of 2021, not far from the six-year high of about $5 billion.

At the same time, about $2 billion flowed out of financial stock funds, the largest outflow of funds in more than a year, not far from the largest outflow of funds in about six years, when the outflow of funds exceeded $3 billion.

Considering the decline in US bond yields, this trend is not surprising, but it may slow down from now on.

"I don't think you should buy a basket of technology stocks," said Erika Klauer, technology stock portfolio manager at Jennison Associates.

Since March 1, the technology select stock SPDR (XLK) has risen by nearly 12%, and the 10-year Treasury yield is 3.5%, lower than the 4% before the banking crisis.

The lower long-term US bond yields make the future profits of fast-growing technology companies more valuable.

But financial institutions are in trouble, especially regional banks. Since March 1, the S&P Regional Banks ETF (KRE) has fallen by about 41%.

The key is that investors have invested a lot of money in technology stocks and withdrawn from financial stocks.

Now, any good news about banks-or bad news about technology stocks-could prompt investors to buy bank stocks and sell technology stocks.

This may mean buying some bank stocks and appropriately reducing technology stocks.