Tech Gets Crushed Again on Traders’ Jitters Over So-So Earnings
- More confidence in growth of ‘everyone else’: Martin Adams
- Sector earnings not awful, just less exceptional: Bernstein
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Everyone knows rising interest rates have been walloping tech shares. A less-appreciated problem for the sector is the market’s evolving profit picture.
Simply put, the group’s specialness is diminishing when it comes to earnings. Income growth for mega-cap tech companies is forecast to fall below the broader market’s rate into the end of the year, hurting their appeal, according to Gina Martin Adams, chief equity strategist at Bloomberg Intelligence.