Bank of England warns U.S. tech stock valuations may be out of whack
Publishing timestamp: 2023-10-10 16:40:26
Summary
The Bank of England has stated that valuations for U.S technology stocks may be too high given the current macroeconomic backdrop and spike in rates. The central bank warns that stretched risky asset valuations increase the likelihood of a greater correction in prices if downside risks to growth materialize. The article also mentions that popular technology stocks trade at a sharp premium to the S&P 500, and provides examples of high price-to-earnings ratios for Microsoft, Alphabet, and Nvidia. The Bank of England's comments are seen as a warning about the potential overvaluation of technology stocks.
Sentiment: NEGATIVE
Keywords: economy, breaking news: technology, breaking news: economy, alan greenspan, business news, markets, nvidia corp, microsoft corp, breaking news: markets, alphabet inc, prices, technology, ben bernanke,