Tech stock rallies , Meta leads the way!
Results this week from mega-cap tech stocks have largely given extra legs to the sector’s run-up.
Meta Platforms, which posted its first sales increase in nearly a year, is now the best performer in the S&P 500 this year, up 98%. The NYSE Fang+ index has gained 37%.
Tweet on tech stocks
Results this week from mega-cap tech stocks have given extra legs to the sector’s run-up.
Meta Platforms, which posted its first sales increase in nearly a year, is now the best performer in the S&P 500 this year, up 98%.
The NYSE Fang+ index gained 37%.#meta #TechNews #stocks pic.twitter.com/T7nSwZI2hi— The_Journalbiz (@the_journalbiz) April 28, 2023
Factset chart
But Jon Bell, a fund manager at Newton Investment Management, is steering clear. U.S. tech companies with huge market valuations don’t meet the dividend-yield requirement for entry into his income-focused portfolio.
Mr. Bell says investors are sending tech stocks higher on a mistaken belief that the Federal Reserve will soon lower interest rates. The central bank will stay in inflation-fighting mode even as economic growth slows, according to Mr. Bell, who says that favors shares in consumer-staple, healthcare and utility companies as well as non-bank financial firms.
“I haven’t really seen anything…that suggests the optimistic idea that rates will be aggressively cut in the third or fourth quarter of this year,” Mr. Bell said.
