Marina Lyubimova
Bank of America's latest market analysis has identified warning signs in specific asset classes rather than across the board. The investment bank's proprietary Bubble Risk Indicator is now flashing caution signals for commodities and select regional markets, while broader equity benchmarks show relative calm.
Regional Volatility Spikes in Europe
Bank of America has spotted signs of "bubble-like" behavior emerging in targeted market segments after rapid, concentrated price gains. The bank specifically called out materials stocks, gold (XAU), silver, and South Korea's KOSPI following three-month rallies that topped 20% while volatility simultaneously climbed in its February 2026 market update. The key message wasn't that risk is spreading everywhere—it's that specific corners are overheating fast.
The warning comes through Bank of America's Bubble Risk Indicator, a tool the bank launched in December 2025 and now updates weekly. What's notable is the split: broad equities and megacap tech names are holding relatively steady, while these select pockets are heating up quickly. That contrast matters because it suggests we're not looking at a market-wide top, but rather concentrated areas where momentum and volatility are accelerating together.
The update also flagged regional concerns in Europe. Bank of America noted that technology and basic resources sectors are showing roughly 15% year-over-year jumps in single-stock volatility even as headline indexes stay flat—a pattern that often precedes sector-specific pullbacks, especially when AI-related shocks are amplifying the swings.
Targeted Risk Rather Than Market-Wide Alarm
Bank of America's broader takeaway emphasizes precision over panic. Instead of declaring a market-wide top, the analysis maps where crowding and volatility appear most concentrated right now. Commodities-linked assets and select regional equity markets are singled out as hot spots, while the rest of the market landscape is portrayed as more stable.
For related coverage, TheTradable has tracked silver volatility signals, silver price, and bubble indicators in equities.
Marina Lyubimova
