Tech stocks suffered a broad sell-off, with Walmart being the only gainer. While GOOGL fell 3.57%, CSCO 3.58%, AMZN 3.21%, AVGO 2.46%, and JPM 2.44% all plummeted, Walmart bucked the trend, rising 1.03%. The market is facing multiple pressures from war, supply chain crises, and a hawkish stance from the Federal Reserve, leading to a flow of funds from tech stocks to safe-haven consumer staples.
I believe that in the short term, tech stocks will continue to be under pressure from the triple whammy of war, inflation, and interest rates. If the Nasdaq falls below 23,500, the decline could accelerate. The supply chain crisis remains unresolved, inflation is stubborn, and interest rate cuts are unlikely.
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