Looking back at the past five months of this year, the sharp decline in U.S. tech stocks is hardly a rare sight. Against the backdrop of the Russia-Ukraine conflict, with U.S. inflation hitting a 40-year high and the Federal Reserve raising interest rates and shrinking its balance sheet, a series of headwinds have continued to batter U.S. stocks—especially tech stocks and growth stocks.
So far this year, led by tech stocks. $Nasdaq Composite Index (.IXIC.US)$The index has already fallen by 28%, with nearly 9% of that decline occurring just within the past month. Earlier this month, the major tech giants—FAAMG—wiped out over 1 trillion dollars in market capitalization in just three trading days, a plunge in stock prices that was truly alarming.
But right at this moment, Wall Street executives remain remarkably optimistic! In their view, the plunge in tech stocks is merely a temporary “shake-out”—after the pain subsides, the crisis is unlikely to spread to the entire market.
Why do they share this consensus? Where does this confidence come from? Let’s hear what top executives have to say about the U.S. stock market!
Fundamentals:Axel Lehmann, Chairman of Credit Suisse, believes that although tech stocks are currently experiencing some volatility, investors should maintain a long-term perspective, as many companies in the sector remain highly solid and sound.
“Basically, across all global stock markets, valuations of tech companies have declined, but profits remain intact, so the market is just experiencing some minor ripples.”...