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US stock turbulence throws spotlight on Big Tech's valuations

Economic TimesEconomic Times · 3m
US stock turbulence throws spotlight on Big Tech's valuations

The recent selloff in US stocks has highlighted concerns about the high valuations of tech companies such as Nvidia and Microsoft. With the S&P 500 tech sector trading at nearly 30 times earnings estimates, market participants are becoming more cautious. Strongly valued stocks like Tesla and Alphabet have already experienced declines, and upcoming earnings results from tech giants like Amazon, Apple, Microsoft, and Meta Platforms are expected to have a major impact. Furthermore, investors may start to unload stocks if faced with market turbulence or changes in Federal Reserve policy. Despite this, some believe that stocks are still not as overvalued as they were during the dot-com bubble in the early 2000s.

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