2024-04-22 09:43:13 ET
Summary
- Ahead of their Q1 2024 earnings, big tech stocks swung lower last week amid a broad market sell-off.
- In my view, soaring long-duration treasury yields and rightful concerns about liquidity drying up are driving this pullback.
- The technical setup for big tech stocks heading into Q1 looks bearish, and a failure to meet lofty investor expectations could lead to a deeper pullback in this frothy, overcrowded basket.
Introduction
Amidst rising geopolitical risk and an ongoing surge in long-duration treasury yields (propelled by resurgent inflation), broad US equity markets took a tumble last week, with the S&P-500 ( SPY ) dipping ~4% and the tech-heavy QQQ ETF ( QQQ ) falling ~6%. While the equity sell-off was quite broad, market generals (i.e., big tech giants) led the charge lower - faltering right on the cusp of their Q1-2024 earnings.
As you may know, the stock market rally off the October 2022 lows has been led predominantly by big tech giants, earning this basket a moniker - "Magnificent 7"! While the leader of this pack - Nvidia ( NVDA ) - won't be showing its report card until later next month, all other members of this elite group are set to publish their quarterly numbers within the next few days:
Company | Earnings Date |
Tesla ( TSLA ) | 04/23/2024 |
Meta ( META ) | 04/24/2024 |
Microsoft ( MSFT ) | 04/25/2024 |
Alphabet ( GOOGL )( GOOG ) | 04/25/2024 |
Amazon ( AMZN ) | 04/30/2024 |
Apple ( AAPL ) | 05/02/2024 |
Read the full article on Seeking Alpha
For further details see:
Big Tech's Big Breakdown, The Technical Setup Ahead Of Earnings