Tech stocks bounce as interest rate instability eases

High-tech stocks rebounded from plunge after Federal Reserve Chairman Jerome Powell pledged Support economic recoveryAlleviates concerns about the impact of rising interest rates on the months-long rise in major US indices.

The Nasdaq Composite fell 0.5% on Tuesday, but fell 4% earlier that day. Focusing on technology, biotechnology, and the share of other companies that are committed to growing faster than the economy, the index that led the 2020 market recovery from the coronavirus pandemic was in February. It has fallen 4.5% since the 12th.

Tuesday’s volatility goes beyond the favorites of the past year and highlights a midwinter shift in investors’ desire for the real economy sector, including banks. Reassessment is driven by investor expectations. Covid-19 vaccination Recover and expand the scope of economic recovery to a wider range of companies. This month’s rise in US interest rates has forced a reassessment of the risk of equity holdings, which has risen sharply over the past year, raising concerns about long-standing valuations.

The backlash following Mr Powell’s testimony before Congress continues to believe that investors are the best place to invest in U.S. stocks in the long run, while being sensitive to the effects of rising interest rates. It shows that.

Mike Bailey, Research Director at FBB Capital Partners, Investment Manager in Bethesda, Maryland, said:

Tech stocks bounce as interest rate instability eases

Source link Tech stocks bounce as interest rate instability eases

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