Tech Stocks Left Out of Rally Ease Fears a Bubble Is Building

-- To the bubble hunters, signs of excess aren’t hard to find, with cryptocurrencies roaring back and Nvidia Corp. surging nearly 80% since the year began.A $2 Billion Airport Will Test Modi’s Mission, Adani’s AmbitionsBut if there’s some irrational exuberance sweeping across Wall Street, it hasn’t trickled down to one of the most speculative corners of the US stock market: unprofitable technology companies.Twilio Inc.

“Profitless tech stocks’ declines indicates that this is not an AI-fueled bubble,” Kathryn Rooney Vera, chief market strategist at StoneX Group Inc.The market’s rise this year is fueling a growing debate over whether prices have run too far ahead of the economic fundamentals, and the advance has largely paused over the last two weeks as investors weigh whether the Fed will start cutting interest rates as soon as had been expected.

The recent dynamic stands in contrast to the pandemic’s stock-market frenzy, when low interest rates and a rise in day-trading pushed up the price of the most speculative assets, like meme stocks and special-acquisition companies. Goldman’s index of money-losing tech companies rose over 200% in 2020.

Some of this year’s best-performing stocks, such as Meta Platforms Inc. and Amazon.com Inc., have boosted profits by curbing spending and cutting jobs. Rather than speculative bets, Nvidia’s stock price reflects its currently surging earnings as others buy its chips for AI computing. By contrast, Tesla Inc., a pandemic-era darling that recently issued a disappointing outlook, has seen its shares tumble 34%.

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

Tech Stocks Left Out of Rally Ease Fears a Bubble Is BuildingTech stocks are left out of the recent market rally, easing fears of a bubble. Putin's French venture highlights the growth of Russian atomic power. India is set to kick off polls in April as Modi bids for a third term. The FAA will investigate a missing panel on United Flight 433. The US Treasury is asked about a US firm insuring ships carrying Iran oil. Wall Street doom prophesy falls flat as the market experiences its hottest rally since 2016. The UAE's $35 billion investment in Egypt is questioned. The US economy benefits from the bear market in natural gas. The US is investigating Indian billionaire Gautam Adani and his group for potential bribery. Starbucks drops an executive pay package tied to DEI amid conservative pressure. Biden plans to crack down on auto emissions to accelerate EV sales. The Lego CEO is willing to pay extra for renewable plastic used in toy blocks. Spain's Girona Football Club struggles to keep its turf green due to worsening drought. Exxon announces the discovery of new oil reserves in Guyana. Angola raises its key rate due to growing inflation concerns. Alberta's premier discusses book-balancing and urges the federal government to 'stay in their lane' as alcohol consumption declines.
Источник: BNNBloomberg - 🏆 83. / 50 Прочитайте больше »

Stock market today: US stocks fall as tech, rate-cut doubts creep inUncertainty over Fed interest rate cuts and the continued strength of tech stocks has brought caution to the market.
Источник: YahooFinanceCA - 🏆 47. / 63 Прочитайте больше »

Asia Stocks Set for Mixed Open After US Tech Slide: Markets WrapStocks in Asia were mixed as investors focused on China’s policy meeting after official announcements of an ambitious 5% growth target. Tech heavyweights drove Asian peers lower, ahead of Federal Reserve Chair Jerome Powell’s Congressional testimony.
Источник: BNNBloomberg - 🏆 83. / 50 Прочитайте больше »

Markets today: Tech lifts stocks with jobs and Powell in focusWall Street traders breathed a sigh of relief, with Jerome Powell once again signaling he expects the Federal Reserve to cut rates this year — even as a strong economy keeps officials on hold for now.
Источник: BNNBloomberg - 🏆 83. / 50 Прочитайте больше »