Big tech sold off in late hours after Meta Platforms Inc.’s disappointing outlook raised concern on whether the artificial-intelligence euphoria that has powered the bull market has run too far.
A US$250 billion exchange-traded fund tracking the Nasdaq 100 (ticker: QQQ) got hit as the Facebook parent tumbled more than 10 per cent after boosting its spending estimates for the year and projecting sales that were below analyst expectations. In the run-up to the results, equities struggled to gain traction as traders positioned for economic data that will help shape the views on the Federal Reserve’s next steps.
To Mark Hackett at Nationwide, while the cohort of seven tech megacaps has done well in the last two years because of their superior earnings growth relative to the broader market, this advantage could decrease in 2024 and even more significantly in 2025.
“The ‘Magnificent Seven’ are not nearly as powerful as they…
