Tech’s Ferocious Rally Raises Bar for Earnings as Red Flags Wave
- Sector’s earnings are expected to slump most since 2016
- Nasdaq 100 index is headed for best month since July
This article is for subscribers only.
US tech shares are trouncing a broad market rally to start the year, a source of concern for some traders bracing for the sector’s worst earnings slump since 2016.
The Nasdaq 100 Stock Index surged 2.2% Monday as investors turned a blind eye to the risk of a US recession and loaded up on stocks that were among last year’s biggest losers. The tech-heavy benchmark is on pace for its best month since July. It’s gained nearly 9% in January, about double the gain in the S&P 500 Index.