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BENGALURU :
Approvals for a possible COVID-19 vaccine later this 12 months could threaten the current surge in speculative funding in huge U.S. know-how corporations and pull traders again in direction of extra conventional growth-linked cyclical stocks, in response to analysts at Goldman Sachs.
Seen as “stay-at-home” winners within the coronavirus lockdowns, shares in Apple Inc, Facebook Inc, Amazon.com and Alphabet have surged this 12 months and now account for almost a fifth of the S&P 500’s inventory market worth.
Bumper outcomes from the iPhone maker final week pushed it previous Saudi Aramco to grow to be the world’s most respected publicly listed firm and heading in direction of a $2 trillion valuation.
In a worldwide markets analysis notice despatched to shoppers, Goldman analysts stated the present rally could final till Labor Day in early September, however could be threatened by updates on vaccines.
“Approval could … prompt the kind of rotation that started and petered out in May and early June, supporting traditional cyclicals, steeper curves and banks, and challenging tech leadership,” they argued.
This story has been revealed from a wire company feed with out modifications to the textual content.
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