Nasdaq up ~0.3%, S&P 500 edges green; Dow declines ~0.4%
Energy leads S&P 500 sector gainers; Utilities weakest group
Euro STOXX 600 index off ~0.2%
Dollar edges up; gold dips; bitcoin rises ~1%; US crude rallies ~6%
US 10-Year Treasury yield edges up to ~4.33%
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LOW US TECH VALUATIONS FACE LOFTY EARNINGS EXPECTATIONS
Valuations for U.S. technology stocks have undergone a sharp re-rating this year as negative sentiment hit Wall Street, which provides an interesting mix at a time when earnings expectations for the space remain elevated.
The S&P 500 information technology index's .SPLRCT forward price-to-earnings (PE) ratio - a widely watched valuation metric - was last at around 21, hovering near its lowest level since January 2023, per LSEG data.
AI-related and other big tech stocks were under pressure earlier this year as investors grew uneasy over huge AI spending without near-term proof it would translate into faster revenue, stronger margins, and higher cash flow.
Skepticism also mounted over whether the industry's massive capital spending plans were generating returns strong enough to justify already-rich valuations.
The info tech index has fallen more than 2% so far this year after jumping more than 23% in 2025 - a major driver of gains in the broader S&P 500 .SPX at the time.
While shares in the broader sector have declined lately, earnings expectations from the heavyweights have only been revised higher.
First-quarter earnings growth for the info tech sector is currently estimated at 46.2%, up from 35.8% seen at the start of the year, according to LSEG I/B/E/S data.
Some Wall Street brokerages have put forth the case for "buying the dip" in broader U.S. stocks as resilient corporate earnings growth could cushion the fallout from the Middle East conflict.
J.P. Morgan analysts said in a note that given the sharp re-rating of the "Magnificent 7" technology stocks, the absolute downside might be more limited from here.
Chip giant Nvidia NVDA.O was last trading at around 21 times its 12-month forward earnings, well below its 10-year average of 36 and briefly hitting its lowest since early 2019.
Uncertainty growing from the Iran war has also hit U.S. equities broadly of late, but the tech index so far has been the best-performing sector since the conflict began in late February.
(Shashwat Chauhan)
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EARLIER ON LIVE MARKETS:
HOME SALES TURN SOUTH AS WARTIME BORROWING COSTS CLIMB CLICK HERE
RETAIL COMPANIES SET FOR TARIFF REFUND WINDFALL CLICK HERE
US STOCKS MIXED EARLY AS IRAN TALKS FAIL, US BEGINS BLOCKADE CLICK HERE
CHIP STOCK RALLY FACES TEST AS US-IRAN TALKS FAIL TO DELIVER DEAL CLICK HERE
UK HOMEBUILDERS LOOK CHEAP AFTER WAR-DRIVEN SELLOFF - MORNINGSTAR CLICK HERE
EVEN IF WAR ESCALATES, THIS ISN'T THE 1970'S CLICK HERE
TIME TO PAY ATTENTION TO THE UZBEKISTAN'S SUM? CLICK HERE
EUROPEAN STOCKS NOT TOO FAZED BY IRAN TALKS FAILURE CLICK HERE
BEFORE THE BELL: EUROPEAN SHARES SET FOR OPENING FALL CLICK HERE
MORNING BID EUROPE: OIL SURGES ON US BLOCKADE OF IRAN CLICK HERE
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