A sharp sell-off in 2024's winning tech giants has left investors wondering whether it's safe to scoop up the pummeled shares. Popular artificial intelligence related stocks fell sharply Monday after Friday's weak July jobs report stoked concerns that the Federal Reserve is behind the curve on rate cuts and that the U.S.
economy is barreling toward a recession. Technology stocks bore the brunt of those losses as investors entered risk-off mode and doubts mounted over how soon these megacap companies will start to monetize their hefty AI investments. At one point during Monday's rout, the "Magnificent Seven" stocks combined had lost nearly $1 trillion in value , later recovering some of the losses.
.IXIC 5D mountain Nasdaq performance over the last five trading days That's left some investors wondering whether the AI trade is beginning an unwind, and questioning whether the sell-off is buying opportunity — or signs of broader contagion to come. Watching for pullbacks "It's painful, but it's necessary," said Jamie Meyers, senior analyst at Laffer Tengler Investments.
"We do believe we're in a secular bull market, and these bull markets can last a very long time when they're tempered by corrections. We're a little overdue for one." To be sure, some investors on Wall Street are pumping the brakes after Monday's sell-off, cautioning others to hold off on buying the dip just yet.
Harvest Portfolio Management's Paul Meeks recommended waiting until the end of the reporting season t.