By Lewis Krauskopf
New York technology actions (Reuters) -us show signs of vulnerability after a massive race, which has investors pointing to exaggerated gains by AI -AI while funds have taken measures to position themselves from the high -flying sector.
Investors seek to deactivate portfolios or lock profits for a seasonal period for stocks. The imminent speech on Friday by the president of the federal reserve Jerome Powell at the annual Jackson Hole symposium shows prudence, said investors, with the potential for volatility if its comments do not meet the growing expectations of the market that the central bank is ready to reduce interest rates.
“When you have overcrowding and you have had such solid performances, you don’t need much to see a course of this,” said Keith Lerner, co-responsible for investments at Truist Advisory Services. “At the same time this week, everyone is waiting for the Fed, and there is a repositioning before that.”
The technological sector of heavy goods vehicles of the S&P 500 fell sharply on Wednesday for a second consecutive session, placing its drop of the week at around 2.5%, while the Nasdaq composite of technology was down approximately 2% for the week. The actions of some highflyers, including Nvidia Corp and Palantant Technologies, were particularly affected.
The decline occurs after a huge gathering in which the technological sector has climbed more than 50% last week from the bottom of the market for the year in April. This easily exceeded the gain of 29% of the wider S&P 500 during this period and asserted the assessments of technological actions at high levels.
Investors have cited mistrust of the business of artificial intelligence, which was a key engine of technological actions and the wider market, because the indices have skyrocketed to record heights this year.
NVIDIA’s actions, the semiconductor giant who symbolized the IA trade, won around 30% this year while the actions of the AI data analysis and analysis company doubled about the year at the start.
Indeed, the Prix / Price / Profit Ratio of the Technological Sector has recently reached approximately 30 times the benefits expected for the next 12 months, its highest level in one year, according to LSEG Datastream, while the share of the overall market value technology of the S&P 500 is almost its highest since 2000.
Recent signs of precurso included a study by researchers from the Massachusetts Institute of Technology who revealed that 95% of organizations do not obtain any feedback on IA investments, as well as comments from the OPENAI CEO, Sam Altman, who said to the Tech News website last week that investors could be overexcited about AI.
