Technology stocks stabilised on Tuesday despite sharp declines more broadly across Wall Street, as investors weighed whether resurgent inflation could prompt central bankers to rethink current loose monetary policy.
The blue-chip S&P 500 index closed lower by 0.9 per cent. The Nasdaq Composite — whose largest constitute includes big tech groups Apple, Amazon, Facebook and Tesla — initially dropped 2 per cent before paring back most of those losses to end down 0.1 per cent as “buy the dip” investors re-emerged.
Asset manager Cathie Wood dismissed the prospect of a deeper bear market in technology shares at a monthly webinar with investors held on Tuesday. She said funds run by her firm, Ark Investment, which has become a bellwether for speculative tech stocks, had endured many big drops over the past five years.
“Our long-term performance is determined by what we do in downturns,” she said. “We average…