Bank of America says dump tech and buy industrials following Democratic sweep

Share
Traders work on the floor of the New York Stock Exchange.
NYSE

(This story is for CNBC Pro subscribers only).

The victories by Democrats in Georgia mean that investors should make a change to their sector allocations as the Biden administration's policies become more clear, according to Bank of America.

The firm said in a note to clients Thursday that it was cooling on the tech sector and becoming more bullish on industrials as the Democrats gain control of the Senate. NBC News projects that Rev. Raphael Warnock and Jon Ossoff have won the Senate runoffs in Georgia, giving the Democratic party narrow control of both houses of Congress.

More In Street Calls

CNBC ProChipmakers are headed for a boom and these stocks could pop by 30%, investment bank says
CNBC ProEnergy is the best-performing group this year and Wall Street analysts see more gains ahead
CNBC ProHere are Monday's biggest analyst calls of the day: Microsoft, Coca-Cola, Peloton, Target & more