U.S. stocks rose on Thursday, even as underwhelming guidance from Nvidia Corp (NASDAQ: NVDA) stoked fears of more pullbacks, but Apple Inc. (NASDAQ: AAPL) and Tesla Inc. (NASDAQ: TSLA) analyst Gene Munster thinks it isn't yet time to call the bottom.
What Happened: Munster, also a managing partner at Loup Funds, on Thursday alerted investors on Twitter to gear up for a "bear market tech rally," saying the Nvidia stock jump was a "classic sign" of near-term bad news being priced in.
Get ready for bear market tech rally.
— Gene Munster (@munster_gene) May 26, 2022
Both $NVDA and $SNOW open down today and it rallied 12% intraday. Classic sign that bad news in the near-term is priced in. pic.twitter.com/iaydGfe9JJ
The market, according to Munster, will find the bottom somewhere between the June and September quarters.
The analyst, however, is optimistic about the year ahead.
"Either way you slice it, 2023 should be a good year for #tech stocks," he tweeted.
Related Link: A Breakdown Of The VIX Index - S&P 500 Index Relationship And How It Can Be Better Understood
Why It's Important: Tech stocks have been the driving force behind the bull market seen in the past several years. By the same token, these stocks have also led the year-to-date sell-off.
The Invesco QQQ Trust (NASDAQ: QQQ) has lost about 25% for the year-to-date period compared to the more modest 14.4% drop by the SPDR S&P 500 ETF Trust (NYSE: SPY).
A reversal in sentiment toward tech stocks could be a leading indicator for a broader market recovery.
The Invesco QQQ Trust ended Thursday's session 2.77% higher at $299.33, according to Benzinga Pro data.
