Tesla, Meta And Other Earnings Will Test Stocks’ Recent Selloff
- Recent slump in S&P 500 was led by Tesla and AI-related names
- Banks, on the other hand, rose in face of broad market losses
The Meta Platforms headquarters in Menlo Park, California, US.
Photographer: Nick Otto/BloombergThis article is for subscribers only.
Investors appear to be favoring value stocks over growth in the latest market downturn, which saw the biggest drop for US equities last week since the Silicon Valley Bank collapse.
The S&P 500 index’s 3% decline last week presents a different narrative to last year’s banking crisis. Tech giants like Super Micro Computer Inc., Tesla Inc. and Nvidia Corp. bore the brunt of the fall, compared with a resurgence in bank stocks. This hints at a rotation from growth to value stocks — a shift that has failed to materialize over the past years.