SaltWire's Atlantic regional weather forecast for October 19, 2023 | SaltWireNEW YORK - High noon is approaching for the market's biggest stocks, as pressure grows on richly valued technology and growth companies to deliver robust earnings at a time when sky-high bond yields threaten to dull the allure of equities.
At the same time, Treasury yields at 16-year highs are providing investment competition to stocks. With U.S. government bonds now offering risk-free yields of around 5% or more, investors may be less forgiving of companies which are unable to deliver strong results. The Wells Fargo Investment Institute in June downgraded its rating on the information technology sector -- which includes Apple, Microsoft and Nvidia -- to"neutral" from"favorable.”
Complicating the outlook is the relentless climb in interest rates and Treasury yields, which has been driven by a mix of Federal Reserve hawkishness in the face of a strong economy and worries over the U.S. fiscal picture. More than a third of fund managers named"long big tech" as the most crowded trade, according to BofA Global Research's monthly survey published this week.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: SooToday - 🏆 8. / 85 Read more »