$Invesco QQQ(QQQ)$ $SPDR S&P 500 ETF Trust(SPY)$ $CoreWeave, Inc.(CRWV)$ Tech stocks are still under pressure as investors keep questioning whether the massive AI spending can actually deliver real returns. Higher capex and cash-flow worries are adding to the uncertainty.
Nomura strategist Naka Matsuzawa thinks the midterm elections may have limited influence on the market. The bigger factors are Fed policy, interest rates, and confidence in AI profitability.
Three things worth watching:
1. Fed policy: lower rates could support growth-stock valuations.
2. AI returns: investors want stronger revenue and cash flow, not just higher spending.
3. Credit conditions: rising borrowing costs could slow tech investment and data-center expansion.
Midterms may affect sentiment, but a sustained tech rebound will likely depend on the Fed and improving confidence in AI returns.
Do you think the Fed holds the key to the next tech-stock rebound?
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