Big Tech will outperform in a high interest rate environment: Wall Street pros

Yahoo Finance04-14

No rate cuts, no problem. Investors are revisiting an old playbook as mega-cap tech stocks came back in favor last week. The appetite for growth returned during Thursday’s trading action, despite ...

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The appetite for growth returned during Thursday’s trading action, despite ...</p>\n\n<a href=\"https://finance.yahoo.com/news/big-tech-will-outperform-in-a-high-interest-rate-environment-wall-street-pros-143011550.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Big Tech will outperform in a high interest rate environment: Wall Street pros</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBig Tech will outperform in a high interest rate environment: Wall Street pros\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-14 22:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/big-tech-will-outperform-in-a-high-interest-rate-environment-wall-street-pros-143011550.html><strong>Yahoo Finance</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>No rate cuts, no problem. \nInvestors are revisiting an old playbook as mega-cap tech stocks came back in favor last week. The appetite for growth returned during Thursday’s trading action, despite ...</p>\n\n<a href=\"https://finance.yahoo.com/news/big-tech-will-outperform-in-a-high-interest-rate-environment-wall-street-pros-143011550.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE0034235188.USD","symbol_name":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/big-tech-will-outperform-in-a-high-interest-rate-environment-wall-street-pros-143011550.html","article_id":"2427905867","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/y5Cr6DoD1pq8A_jDrvhBoA--~B/aD0zMzMzO3c9NTAwMDthcHBpZD15dGFjaHlvbg--/https://s.yimg.com/os/creatr-uploaded-images/2024-04/eef2bc40-f996-11ee-b79f-272b1200db6d"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2427905867","pubTimestamp":1713105011,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Investors are revisiting an old playbook as mega-cap tech stocks came back in favor last week. The appetite for growth returned during Thursday’s trading action, despite another hot inflation report that puts rate cuts from the Federal Reserve this year in doubt.That was a bit of a surprise, given that growth stocks are typically more sensitive to higher interest rates. But experts say the reason why is clear: Strong fundamentals and large cash piles.“Many of these mega cap growth stocks are flush with cash and have lower debt levels, and therefore tend to be less dependent on financing needs and less interest rate sensitive,” Truist co-chief investment officer Keith Lerner told Yahoo Finance.“Tech would be somewhat less sensitive to fewer Fed rate cuts compared to other sectors, and would likely outperform in such an environment,” said Lerner.A more resilient economy can stimulate business activity, and ultimately boost profits this earnings season, another expected driver of big tech","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","LU0354030511.USD":"ALLSPRING  U.S. LARGE CAP GROWTH \"I\" (USD) ACC","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0354030438.USD":"富国美国大盘成长基金Cl A Acc","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","MAGS":"The Magnificent Seven ETF","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","GOOG":"谷歌","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","BK4535":"淡马锡持仓","GOOGL":"谷歌A","LU0528227936.USD":"富达环球人口趋势基金A-ACC","BK4538":"云计算","LU0128525929.USD":"TEMPLETON GLOBAL \"A\" (USD) ACC","MSFT":"微软","IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","LU0889565833.HKD":"FRANKLIN TECHNOLOGY \"A\" (HKD) ACC","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU0082616367.USD":"摩根大通美国科技A（dist）","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","META":"Meta Platforms","AAPL":"苹果","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","BK4512":"苹果概念","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","LU0494093205.USD":"贝莱德ESG灵活多元资产A2 USD-H","AMZN":"亚马逊","BK4511":"特斯拉概念","LU1804176565.USD":"EASTSPRING INV GLOBAL GROWTH EQUITY \"A\" (USD) ACC","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","BK4514":"搜索引擎","TSLA":"特斯拉","NVDA":"英伟达","LU0823414478.USD":"法巴经典能源转换基金","LU0511384066.AUD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (AUDHDG) ACC","BK4532":"文艺复兴科技持仓","IE0002270589.USD":"LEGG MASON CLEARBRIDGE VALUE \"A\" (USD) INC","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU1691799644.USD":"Amundi Funds Polen Capital Global Growth A2 (C) USD","BK4534":"瑞士信贷持仓"},"translate_title":"大型科技公司将在高利率环境下表现出色：华尔街专家","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMZN":1,"TSLA":1,"NVDA":1,"MSFT":1,"MAGS":1,"AAPL":1,"META":0.9,"GOOG":0.9,"GOOGL":0.9},"content_text":"No rate cuts, no problem. \nInvestors are revisiting an old playbook as mega-cap tech stocks came back in favor last week. The appetite for growth returned during Thursday’s trading action, despite another hot inflation report that puts rate cuts from the Federal Reserve this year in doubt. \nThat was a bit of a surprise, given that growth stocks are typically more sensitive to higher interest rates. But experts say the reason why is clear: Strong fundamentals and large cash piles.\n“Many of these mega cap growth stocks are flush with cash and have lower debt levels, and therefore tend to be less dependent on financing needs and less interest rate sensitive,” Truist co-chief investment officer Keith Lerner told Yahoo Finance.\nFree cash flow from Magnificent 7 members — Nvidia (NVDA), Apple (AAPL), Alphabet (GOOG, GOOGL), Amazon (AMZN), Meta (META), Microsoft (MSFT), and Tesla (TSLA) — jumped more than $100 billion in 2023.\nLast week, the group outperformed the broader market, with the Roundhill Magnificent Seven ETF (MAGS) ending the week with gains, compared to the S&P 500’s 1.6% decline. Amazon hit an all-time high, and Alphabet’s valuation briefly crossed $2 trillion. Even Apple finally caught a bid with investors, recording its best day in nearly a year.\nAnd Wall Street pros tell Yahoo Finance that the group will likely continue to outperform in a higher-for-longer rate environment, at least on a relative basis.\nNewEdge Wealth’s Cameron Dawson said big tech’s solid balance sheets and fundamentals suggest the group is a “defensive” and “safety” play, adding that pullbacks are “likely buyable in the short-term.”\n“Tech would be somewhat less sensitive to fewer Fed rate cuts compared to other sectors, and would likely outperform in such an environment,” said Lerner. \nIn addition to large cash piles, a resilient economy will be a boon to the Mag 7, Carson Group chief market strategist Ryan Detrick told Yahoo Finance. So far, there are few signs that higher rates are slowing GDP growth or corporate earnings. \nDetrick expects continued economic growth to “offer opportunities for the group, even in the face of less rate cuts.”\nA more resilient economy can stimulate business activity, and ultimately boost profits this earnings season, another expected driver of big tech in the near term. Analysts estimate the sector’s first-quarter profits to surge 20%, according to Bloomberg data.\nWedbush’s Dan Ives sees first-quarter results as a “major positive catalyst.”\n“We expect tech stocks to be up another 15% for the year adding to the strong start to 2024 as now the broader tech growth story takes center stage,” Ives wrote in a note to clients last week. \nTo sum it up: Delayed rate cuts don't mean a downturn for tech's biggest names. Rather, those with strong fundamentals can outperform — despite valuation and rate concerns — and potentially provide stability for the broader market landscape.\nSeana Smith is an anchor at Yahoo Finance. Follow Smith on Twitter @SeanaNSmith. Tips on deals, mergers, activist situations, or anything else? Email seanasmith@yahooinc.com.\nClick here for the latest technology news that will impact the stock market.\nRead the latest financial and business news from Yahoo Finance","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2427905867"}