IBKR - Are the Big Tech Stocks About to Take a Breather? Here's What This Broker Thinks
2023-07-27 09:10:00 ET
It has been a rip-roaring start to 2023 for the stock market with the technology sector performing particularly well. The Nasdaq-100 index, which is home to the largest tech companies listed on the Nasdaq exchange, has surged 42% year-to-date.
But has it moved too far, too fast? While it shouldn't be a concern for long-term investors, there's a chance the market could take a temporary breather based on some data released in the 2023 second-quarter earnings report of Interactive Brokers (NASDAQ: IBKR) , one of the world's largest online stock brokerage firms.
While the company had a record number of customers, it revealed some evidence investors might be more cautious now than they were at the start of the year. Share trading volumes dropped materially both year over year and compared to Q1, as investors are sitting on significant gains in the "Magnificent 7" tech stocks and are reluctant to sell. But it's also an indication that investors are hesitant to open new positions, and here's what IBKR thinks will happen next.
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Are the Big Tech Stocks About to Take a Breather? Here's What This Broker Thinks