Tech Is Rallying on Fed Bets — But It’s Facing a Reckoning
- Majority of investors expect earnings to drive S&P 500 lower
- Tight financial conditions, recession, inflation are key risks
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This year’s 20% rally in US technology stocks is decoupling from reality ahead of what’s predicted to be a gloomy reporting season, the latest MLIV Pulse survey shows.
While investors have flocked to tech in the market shakeup amid recent banking turmoil, the rotation is at odds with analyst calls for the steepest drop in quarterly profits for the sector since at least 2006. Nearly 60% of the 367 respondents surveyed by Bloomberg said the bounce in the shares had nothing to do with earnings expectations.