Tech stocks are expected to remain under pressure in the near term, as investors panic about slowing growth rates, soft employment data, and the unraveling yen carry trade. The ongoing earnings season should also be a key driver of stock prices, as market participants closely watch tech companies' forecasts as the artificial intelligence (AI) race enters a new leg.
After a solid performance in the first half of the year, the tech-heavy Nasdaq Composite ($NASX) has pulled back 10% from all-time highs, entering correction territory. Some market-watchers believe the Federal Reserve should have announced interest rate cuts in its last meeting, given that inflation numbers have cooled off amid sluggish consumer spending and an uptick in the July unemployment rate.
