Tech Stocks Struggle Post-Earningsđ
In equities, prices were never able to bounce back above the previous day's close, as the poor reception to Alphabet's and Meta's earnings were too much for the market to shake off. The Nasdaq traded as much as -2.3% weaker before close the day down -1.7%, while the -1% day in SPX masked a dramatic outperformance of value over growth stocks (~2%) despite a recovery in bond yields. We might be seeing a mini-rotation out of big-tech and growth names back into value as the markets become more convinced that the rise in the term premium is here to stay.
