Institutions: Stubborn Inflation Leaves Fed Little Room to Rescue Tech Stocks

Odaily reports: Utkarsh Ahuja, founder and managing partner of Moon Pursuit Capital, said that persistently elevated inflation could limit the Federal Reserve's ability to provide monetary policy support, even if tech stocks weaken. He noted that recent comments from San Francisco Fed President Daly about the possibility of further rate hikes in the future serve as a reminder that investors should not take it for granted that the Fed will step in to rescue the market in the near term.

Ahuja said: "For capital-intensive AI projects, even if market demand meets expectations, higher financing costs and longer approval cycles could reduce project returns." He added that for companies whose existing projects have not yet generated cash flow but need to raise new capital, they not only face project execution risks but must also contend with uncertainty regarding future financing conditions. (Jinshi)