Possible pause in U.S. rate hikes could boost tech sector optimism: Analyst
Several technology giants have posted strong quarterly results this earnings season despite dealing with uncertain economic activity, and one analyst says the latest push for the sector could come from the anticipated pause in rate hikes from the U.S. Federal Reserve.
Speaking with BNN Bloomberg’s Paul Bagnell in an interview on Monday, Tom Forte, managing director and senior research analyst at D.A Davidson, said a pause in U.S. interest rates could bring renewed investor interest to the tech sector.
He said there is enthusiasm after Amazon.com Inc., Alphabet Inc. and Microsoft Corp. displayed strong artificial intelligence capabilities within the latest earnings season.
“The good news for big tech is that the Federal Reserve in the U.S. seems to be at a point where it’s going to stop raising rates,” Forte said.
The latest U.S. Fed rate decision will be released on Wednesday.
Forte is bullish on Amazon, Apple Inc., and Roku Inc.
Check out the full video at the top of the article to learn more.
He and his family do own shares of Amazon, but do not own any other stocks mentioned above. His firm and investment clients also do not own any shares of the companies mentioned above.
Check out the full video at the top of the article to learn more.