Tech Sell-Off Hits Nvidia and Microsoft as Growth Slows
Nvidia and Microsoft shares dropped sharply as a broader technology sell-off signaled a period of slower earnings growth for the sector.
A significant sell-off in equities has hit the technology sector, led by a 8.7% drop in Nvidia Inc. shares and a 2.9% decline for Microsoft. The Nasdaq 100 has fallen approximately 14% to 15% from its peak, while the S&P 500 has decreased by about 5%.
Nir Kaissar, founder of Unison Advisors, states that this market movement indicates a coming period of slower earnings growth following years of double-digit increases. While he considers a full earnings recession unlikely, he warns that policymakers risk exacerbating the slowdown if they restrict the economy too aggressively.
Kaissar points to the two-year bond yield dropping to around 4.5% as a signal of cooling inflation and a potential economic slowdown. He cautions that over-tightening policy could trip up the economy, though he does not believe the current market shows the kind of bubbles seen during the .com era.
