Yeah tech is not it anymore. This week really showed where investors lie. The tech sector experienced probably the craziest pullbacks we have seen in a while, with Nasdaq dipping 3 percent and the S&P dipping 1%. Companies like Alphabet and intel absolutely plummeted, even though they met expectations. In my opinion, this just shows how high standards have gotten for tech after this AI boom. Energy prices also continued to climb because of geopolitical tensions and the treasury yield is still around 5%. Investors are really starting to see that this inflation could stick around for a lot longer than anybody would want it to.
Looking ahead to next week, especially with the current forecasts favoring Democrats in the midterm, expect serious volatility. This along with companies such as Apple, AMD, and Palantir reporting make this probably the biggest and craziest week we are gonna see in a while. This could also lead to more defensive sectors like healthcare start to be more favored with investors, especially considering how market sentiment is about as trustable as flipping a coin. Well, see you after election day!
