The fall in interest rates has prompted investors to buy shares in a number of technology companies in the wake of the economic downturn.
The tech giant Nasdaq Composite Index fell 3.3 percent on Wednesday, the worst day since February 2021, and sales in the 22 tn U.S. Treasury bond market have worsened.
The U.S. government has been hit hard by a series of unprofitable companies – including recent ones. Their assessment is based on future earnings and is therefore sensitive to rising costs.
The dramatic change in the stock market since the beginning of the year, which supports the role of banks and large industry groups, has been prompted by the expectation that the Omikron corona virus will cause more disruption to large global economies than the previous ones. .
Honey Reda, managing director of Pingbridge Investments portfolio, said “Speech-technology is collapsing” and was referring to non-profit “speculative” technology companies.
Bankruptcy data collection data collected by Goldman Sach is down 6 percent this year, following a 0.2 percent increase in the benchmark S&P 500. In the first few days of 2022, the percentage of ecommerce groups Etsy and Farfetch both dropped by 10 percent.
Quest Diagnostics, a pharmaceutical company that performed well last year, is down 12 percent and 8 percent, respectively, by 2022.
Investors, on the other hand, have invested in car manufacturers Ford and General Motors, as well as banks, including the Bank of America and Citigroup. The KBW Bank Index is close to 7 percent this year, which closes at a record high.
Companies in the travel and entertainment industries have also been hit hardest during the epidemic, with American Airlines and United Airlines, as well as the operator carnival rising. A.D. Companies closely linked to the opening of the US economy in 2021 have increased by about 5 percent this year, including the Goldman Index – including the supermarket Simon, hotel group Marriott International and aircraft maker Boeing.
In light of the changes made earlier in the year, bankers and investors have warned that they are preparing for a difficult journey in the first quarter. Many are focusing on the Federal Reserve, which is pulling back support during a pandemic that has helped boost the stock market.
David Lebovitz, JPMorgan’s asset management strategist, said he was “saddened” by the recent sharp rise in bond yields. According to the Financial Times, 10-year treasury production is up 0.17 percentage points by 2022.
“We’re not going for high-end flyers,” Lebovitz added. We are going to companies that can generate revenue.
Investors warn that potential Corona virus mutations could weaken stocks linked to economic recovery health.
“Truth be told, there is still a great deal of uncertainty in there. . . Christina Hooper, Invsco’s chief market strategist, said the potential for new diversity could be a major problem. “And to be honest, Fed’s regularity in itself creates a lot of variability.”
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