JPMorgan traders warn on speculative tech stocks: Sell now while you can

Odaily reported that many on Wall Street are warning investors holding speculative tech stocks: Sell now while you can. Goldman Sachs' basket of unprofitable tech stocks rose 27% in May, outperforming the Nasdaq 100 Index by 17 percentage points, marking the basket's strongest performance since November 2020.

Year-to-date, the portfolio has gained 57%, compared to the S&P 500's 11% rise. Andrew Tyler-led market intelligence team at JPMorgan noted that after such a rapid surge, given that potential yields may remain elevated, investors should "remain cautious towards the riskier names within the tech sector." Tyler advocated for shifting towards more established companies in the industry, especially as rising bond yields could have the greatest impact on smaller, loss-making firms. He added that stock buybacks by larger, more profitable tech companies "help facilitate the rotation into quality." (Jinshi)