Tech stocks generally fall into two categories: Older companies that generate steady growth from mature technologies, and younger ones that focus on forward-thinking technologies and secular growth trends. Over the past few months, rising inflation and higher interest rates caused many investors to rotate away from the younger companies and invest in the older blue-chip tech stocks as defensive plays. Instead, they should still buy promising growth stocks that aren't overly speculative. Read More...
Motley Fool
Why Tesla Stock Is Toast Today
Tesla (NASDAQ: TSLA) took a tumble along with the rest of the tech stock market this afternoon, succumbing to interest rate fears after the U.S. Federal Reserve made public its plans to withdraw support from the high-flying U.S. stock market. As of 3:25 p.m. ET, that decision has cost Tesla stock 5.5%. CNBC has the story: From just-published minutes from the Fed’s December meeting, it’s apparent that officials “are ready to dial back policy help aggressively,” in particular, by first slowing then reversing bond purchases (i.e., selling off bonds already purchased) “in the coming months.”
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