But Jeffrey Halley, Senior Market Analyst for Asia-Pacific markets at the consultancy Oanda, is willing to take a wide-angle perspective on all of this. “Technology has been on a huge rally since March 2020, and in that context, tech stocks could fall a long way and still be in a longer-term bull market,” said Halley. “Rather than looking at technology in isolation, it should be noted that stocks, as a whole, retreated.
“I believe that the direction of technology stocks will be resolved by the outcome of this Friday’s US non-farm payrolls number. A higher than 500,000 print will lock-and-load the Fed taper for December, and as markets price in that reality, technology stocks will likely continue lower into Q4. Until then, I would not write off buying the dip!”