Money-losing tech stocks fade again as Fed stays hawkish

Rising rates have hammered tech stocks broadly this year, but riskier companies have been hit especially hard. It’s a dramatic reversal from the steady climb they enjoyed during the pandemic, when economic stimulus and the Fed’s easy-money policies spurred a flurry of speculative buying.Article content

“While it’s never a great idea to be in low-quality names, these look especially risky now as the conditions for speculation have reversed.” Higher rates hurt shares of unprofitable and high-valuation growth companies the most, because their shares are priced on their prospects far out in the future, with bond yields used to discount into today’s dollars the value of earnings that companies may not see for years.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Money-losing tech stocks fade again as Fed stays hawkishA basket of money\u002Dlosing tech stocks compiled by Goldman Sachs is down 62% this year. Find out more. Good! Fold up the Internet and take Cell Phones with it!!!
Source: nationalpost - 🏆 10. / 80 Read more »

U.S. stocks set for mixed open amid focus on Fed, China - BNN BloombergU.S. stocks fell amid concern that China may tighten COVID curbs after a string of reported deaths, with investors seeking shelter in the dollar.
Source: BNNBloomberg - 🏆 83. / 50 Read more »