Posted 3/5/2024, 10:15:28 PM
Tech Stocks Drag Down Markets As Traders Eye Economic Data, Fed Testimony
- Stocks fell as tech giants Apple, AMD, and Tesla dragged down indexes; traders weighed mixed economic data ahead of Fed Chair Powell's testimony
- Bullish positioning in tech is at a 3-year high, raising risks of a pullback, though some say valuations are justified by strong earnings
- The tech rally has spurred bubble concerns, but strategists argue multiples aren't as stretched as in 2000 and AI adoption supports growth
- Corporate highlights CrowdStrike and Target topped estimates, Nordstrom issued muted guidance, while a Citigroup reorg is moving faster than expected
- The "Magnificent Seven" mega-caps have powered markets, but concentration risks and high hopes for AI and rate cuts may set up disappointment