The U.S. tech sector recently recorded its biggest gain in history against the S&P500 index itself (rate of return). But things soon turned the other way.
Meanwhile, if we look at the area of financial results, the recent behavior of stocks in the technology sector can be explained a little.
After several very positive quarters for major tech companies, earnings momentum has slowed considerably (we're still waiting for NVIDIA's results at the end of August).
Of course, annual profit growth is still high here, as 30 percent is still a lot, but this is the slowest growth since the second quarter of 2023 and clearly lower than last quarter (51 percent). This earnings growth is forecast to slow further to 17 percent in the third quarter of 2024 compared to the same period in 2023.
