Chau bull market on Wall Street?: why investors fear that the recovery is near the end

Chau bull market on Wall Street?: why investors fear that the recovery is near the end
December 1, 2023 – 17:42

Technology companies showed disappointing prospects in their latest results.

This year, thanks to the impulse of a group of technology companies, the market managed to recover what it set back in 2022. In this framework, the doubts about the possibility of the trend continuing and more Retail investors are already selling their riskiest securities.

The possibility is that the rally is inflated: the S&P 500 it’s found earning almost 19% annually and the Nasdaq 100 advancing a 46% in the year. There is also concern about the possible overdependence on technology companies since, in their latest results, companies such as Manzana either Goal showed disappointing prospects.

Another factor that could complicate technology companies is the restrictions imposed by the United States in relation to access to advanced computer chips from China. To this is added the possibility of a economic recession in 2024 that does not dissipate.

The decision made by the Federal Reserve. At the last meeting, their representatives They stated that they would “proceed carefully” in relation to possible futures rate movements. The possibility of a rate cut in 2024 generated a stock rise in the last weeks.

Price rearrangement?: how investors act in the face of this possibility

In October, retail investors sold shares for almost US$16,000 million. This figure represents the higher level of sales to monthly level in two yearsaccording to data from S&P Global Market Intelligence.

But the situation worries traders as well as Wall Street professionals. This is reflected in the interest in several exchange traded funds that are betting on the technological space that recently decreased their holdings.

Source: Ambito

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