Source: Wind
The tech-heavy Nasdaq has the highest decline among the three major U.S. stock indexes, and the leading tech stocks have completely given back all their gains since 2021. Can they be bottom-hunting now? See how tech stocks came back after the 2008 financial crisis.
Year to date, the Nasdaq is down 22.46%, the only one among the three major U.S. stock indexes that is currently in a technical bear market.
The technology leader index “FAAMG”, namely Facebook, Amazon, Apple, Microsoft, Google, Tesla, and Nvidia, has completely erased all gains since 2021. Many investors are eager to buy the dip, but is it really the end?
Looking back at the 2008 financial crisis, technology stocks also fell sharply. Now most people only remember that the US stock market has grown for more than ten years, but after the slump that was as high as half, technology stocks have been hovering at the bottom for nearly 4 years, and it was only in 2013. Start to regain momentum.
Bank of America chief investment strategist Michael Hartnett, who is known for his bearishness, said his “doomsday” view has been more and more recognized by Wall Street in its latest May fund manager survey.
The results of the survey of 331 fund managers with $986 billion under management showed that they have sharply lowered their expectations for global growth compared with the previous month and have fallen to a record low (-72%).
Investors’ overweights in tech and defensive stocks have fallen to lows not seen since the 2008 financial crisis, amid a massive rotation in tech stocks. Tech bears hit their highest level since August 2006.
However, Bank of America also suggested that the market is on the verge of “buying against the trend”, there is a short-term buying window, and the stock index will have a wave of “struggling” near the recession period of the bear market, that is, a bear market rebound. The U.S. stock market “has not yet hit the bottom” because the Fed is temporarily unable to stop raising interest rates. At least this year will definitely be the “year of interest rate hikes”, and it is not only the United States that is raising interest rates, but the world is in the process of tightening.
Editor/Corrine
This article is reprinted from: https://news.futunn.com/post/15998576?src=3&report_type=market&report_id=206905&futusource=news_headline_list
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