Soaring US tech stocks leave some investors doubtful rebound will last

In the coming week, investors will be watching a spate of economic data for more clues on whether the Fed's monetary policy tightening is cooling the economy. – AFP

NEW YORK: Hopes that inflation is subsiding are fueling a surge in battered technology and megacap stocks, though some investors believe still-high valuations and doubts over the companies' earnings outlooks may make a sustained reversal elusive.

The tech-heavy Nasdaq Composite index rose 8.1% this week to notch its biggest weekly gain since March, one of several eye-popping market moves that also saw Treasuries soar and the US dollar tumble after Thursday's softer-than-expected inflation data spurred hopes the Federal Reserve could temper its rate hikes.