Home » Will tech stocks continue to crash?The World Is Eyeing Next Week’s Apple and Microsoft – WSJ

Will tech stocks continue to crash?The World Is Eyeing Next Week’s Apple and Microsoft – WSJ

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Heavy tech stocks such as Apple and Microsoft will announce their earnings next week. Can they lead the tech sector to bottom out?

This week, U.S. stocks have been too miserable. The S&P and the Nasdaq have fallen for four consecutive days, hitting new lows in three and seven months respectively. The Dow has fallen for six consecutive days, erasing all gains since December last year, and both the Nasdaq and the Nasdaq hit a record high in October 2020. Worst weekly performance since a month.

The tech-heavy Nasdaq drops for four straight days this week

From the perspective of the disk, large technology stocks were among the top losers in the U.S. stock market this week.The US streaming media giant Netflix took the lead in kicking off the earnings season for large technology stocks. However, after announcing its results, it “did not come out well” and closed down 21.79% on Friday.

In addition, Meta fell 8.7% for the week, falling 20% ​​from its closing high in September last year to a technical bear market. Apple and Amazon both fell for four straight days, down 6% and 12% respectively for the week. Microsoft fell below $300 to a fresh three-month low, down 4.6% for the week.

FAAMNG star tech stocks have their worst weekly performance since the outbreak.

Markets eyeing next week’s Apple and Microsoft

Next week, heavy technology stocks such as Apple and Microsoft will announce their results, and the Fed’s interest rate decision boots will also land. Can US stocks bottom out?

The market is turning its attention to the upcoming quarterly earnings reports of Apple and Microsoft.Is it a continuation of Netflix’s bad start, or a good turnaround?

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Some analysts said that as the epidemic situation improved, the home concept stocks that returned to normal life fell to the altar.And the disappearance of the stay-at-home concept will weigh on the prospects of tech companies.

Wall Street’s previous article mentioned that the decline in home demand corresponds to many branches of the technology sector, and the agency expects that sales of electronic consumer products such as PCs may slow down.

in addition,The bearish sentiment intensified the decline in U.S. stocks.Luca Paolini, chief strategist at Pictet Asset Management, said:

At some point, it is inevitable that the performance of the tech sector will have an impact on other sectors. Once sentiment takes a hit from losses, everything else falls with it.

That makes the market more nervous about upcoming earnings reports from heavyweight tech stocks like Apple and Microsoft.

Loup Ventures co-founder Gene Munster said,The tech sector will remain on edge ahead of earnings reports from heavyweight tech stocks like Apple and Microsoft.

Do tech stocks have a chance to bounce back?

Since the outbreak of the new crown epidemic in 2020, under the “opening the floodgates” of the Federal Reserve and the U.S. Treasury, U.S. stocks have been performing brilliantly. However, in the face of inflation that has repeatedly broken record highs, now Federal Reserve officials have begun to frequently “release eagles”. The market’s early expectations of interest rate hikes have put pressure on U.S. stocks, U.S. bond yields have soared, and technology stocks that rely on future cash flow are even more at risk.

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However, some analysts are still more optimistic about the prospects of the US stock technology sector.

Despite the recent slump in U.S. stocks, especially high-value technology stocks, UBS said,A stronger U.S. dollar may be one of the reasons for lower profit margins at some of the big tech companies, and the outlook for future earnings growth in the tech sector is expected to remain positive.

Risk Warning and Disclaimer

Market risk, the investment need to be cautious. This article does not constitute personal investment advice and does not take into account the particular investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, views or conclusions contained herein are appropriate to their particular circumstances. Invest accordingly at your own risk.

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