Business Insider: “There are 2 things needed to sustain this year’s blistering rally in tech stocks”
By datatrekresearch in IN THE NEWS
Excerpt from Business Insider quoting DataTrek co-founder Jessica Rabe:
.... "DataTrek, in a Thursday note, outlined history illustrating that the Nasdaq is carrying early-year momentum after surging 10.7% in January, which was above the average January return since 1980.
Its 2.3% gain so far in the second quarter appeared on pace to reach or exceed the 5.6% average logged in second quarters during years when January was strong.
"Although the third quarter could prove choppy, returns in Q4 could potentially even exceed Q1," DataTrek co-founder Jessica Rabe wrote.
So what's required to push the Nasdaq Composite even higher? Continued corporate profitability and lower interest rates, according to Rabe.
"[A] further rally in US tech stocks hinges on their corporate profitability continuing to hold up and the Fed cutting rates in 2H 2023, the latter of which likely requires recession," she said"....
Full article here on Business Insider.
