Stock market momentum slowdown gets no sympathy from the Fed


For months companies like Amazon.com Inc and Apple Inc were the only game in town when it came to earnings growth. Now it’s possible a much wider swath of companies will be capable of expanding profits, taking the shine off what had become a giant algorithmic safety trade.

LAST summer as the Faang block was tightening its strangle-hold on equities, a theory was hatched that the only thing that could ever halt the rally in megacap tech would be evidence the economy is healing.

Three weeks into the worst selloff of the year, it’s a view looking more and more prescient. The Nasdaq 100, which surged 48% in 2020 on bets people would be stuck indoors forever, is now tumbling toward a correction. Thursday’s leg came as Federal Reserve chair Jerome Powell did nothing more than recommit himself to an economic recovery whose pace is picking up.

Limited time offer:
Just RM5 per month.

Monthly Plan

RM13.90/month
RM5/month

Billed as RM5/month for the 1st 6 months then RM13.90 thereafters.

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Apple , Amazon , stock market , slowdown , Fed , no sympathy ,

   

Next In Business News

Ringgit closes marginally higher against US dollar
AirAsia X mulls flying to Eastern Europe, London and Orlando
MKHOP posts RM16mil net profit in 2Q24
Gobind: Appointment of new DNB board members marks major milestone in 5G network restructuring
Microsoft CEO Satya Nadella's visit to Malaysia scheduled on May 2
ViTrox optimistic on semiconductor sector growth
Pavilion REIT’s 1Q net profit rises to RM83.2mil
Martijn Rene van Keulen to helm Heineken Malaysia from July 1
OCK proposed RM500mil ICP programme
Profit-taking in the market, KLCI down 0.14%

Others Also Read