Wall St rally needs a technology booster
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That big lever
We all know its might. The famed FAANG (Facebook, Apple, Amazon, Netflix and Google) group is so powerful that it can make or break stock fortunes.
Of late, its members are trying to regain their lost foothold. The danger is confidence in these market leaders looks fragile, which might derail Wall Street’s rally.
Of late, its members are trying to regain their lost foothold. The danger is confidence in these market leaders looks fragile, which might derail Wall Street’s rally.
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Danger is very much real...
The S&P 500 is down 5 percent from its September 20 record high close. Amazon, Alphabet (parent of Goggle), Netflix and Facebook are showing little vigour.
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Troubles brewing?
Aided by a strong economy and deep corporate tax cuts, S&P 500 earnings per share are expected to grow 22 per cent in the third quarter. But trade worries can throw a spanner in the works. Investors stay wary of a potential fallout from US President Donald Trump’s trade conflict with Beijing, and higher interest rates as the strong US economy and low unemployment pressure prices.