Investing.com – Tech stocks have suffered a bumpy ride in September as the road to higher rates for longer has rejuvenated the bears, but Wedbush argues, this weakness will prove to be a temporary joyride as the upcoming earnings season for big tech and fed cuts next year will trigger a rebound in growth across tech.
“Our bullish stance on tech is unchanged despite market fears,” Wedbush analysts led by Dan Ives, a tech bull, said in a note Wednesday, highlighting various positive factors for the industry including the growth of artificial intelligence, cloud, and a rebound in ad-spending.Tech , which is down about 5% over the past month, has been pressured by the hawkish Federal Reserve meeting earlier in September that has pushed Treasury yields to levels not seen since the global financial crisis in 2007.
The Fed's latest projections on the path of interest rates, released last week, showed the Fed members revised the number of rate cuts for next year to two from four previously. As well as the fewer rate cuts, the Fed maintained its outlook for another rate hike for this year, forcing markets to reprice in a higher for longer interest rate environment.
The fundamentals for tech, meanwhile, are yet to be priced in, Wedbush argues, pointing to “transformational growth” of artificial intelligence, cloud, cyber security, and rebound in the digital advertising market.Wedbush believes the upcoming earnings season from big tech will not only be positive but also serve as “sneak peak” for what’s to come in 2024.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Fonte: Investingcom - 🏆 450. / 53 Consulte Mais informação »
Fonte: Investingcom - 🏆 450. / 53 Consulte Mais informação »