They are abandoning the most fragile companies and rebalancing their portfolios in favor of the most solid players.
Propelled by the enthusiasm for artificial intelligencethe Nasdaq 100, the index of listed star technology stocks At New York, has soared nearly 40% since the start of the year. But, recently, the euphoria has subsided. The climate has indeed deteriorated considerably in recent times.
First concern: interest rates. At their annual meeting in Jackson Hole in late August, central bankers, the mighty US Fed in the lead, have shown themselves more determined than ever to fight inflation. They thus ruined the hopes of an easing of their restrictive monetary policies. In front of the persistence of inflation, on the contrary, they paved the way for further rate hikes by the end of the year. This prospect naturally puts pressure on technology stocks. These securities offer low yields and generally suffer when rates rise.
The other major concern is the strength of the economy…