The year has not been kind to tech equities, which have fallen hard. As the Federal Reserve continues to tighten monetary policy to limit inflation, investors have shied away from the industry. The previous two trading days have brought some respite to big tech stock investors. However, it seems like Wednesday will be the end of it.
At the market opening, investors will be closely watching Powell’s speech before the Senate Banking, Housing, and Urban Affairs Committee. Lawmakers will highlight concerns about inflation and the likelihood of a recession.
During premarket trade, Microsoft (NASDAQ: MSFT) was down 1.6% while Amazon.com (AMZN) was down 2%, Nvidia (NVDA) was down 2.3%, and Apple (AAPL) was down 1.6%.
Even while many experts remain positive about the industry, all four equities have lost more than 20% of their value this year.
In the case of Microsoft and Apple, Wedbush analyst Daniel Ives, for example, recommends that investors take advantage of the stock’s recent discount.
Amit Daryanani, an analyst at Evercore ISI, is similarly optimistic about Apple, writing in a research note released on Wednesday that the company’s many services, such as Apple Music, TV, and Arcade, have “plenty of runways” to grow. He kept the stock at an outperform recommendation. According to UBS, Apple grew iPhone exports from China last month at a quicker rate than the total number of cellphones shipped out of the country.
The post Before Jerome Powell’s Senate Hearing, Technology Stocks Were Expected to Begin Lower, Ending a Two-day Gaining Run. appeared first on Best Stocks.
