Apple leads tech stocks lower as investors assess Fed’s hawkish policy

Led by technology behemoth Apple, U.S. tech stocks fell on Thursday as investors assessed the longer-term implications of the Federal Reserve’s hawkish policy on corporate balance sheets.

Ryan Vlastelica and Leah Menton for Bloomberg News:

Megacap tech names initially saw a positive reaction to the Fed’s statement on Wednesday, with investors buying up shares of Apple Inc., Microsoft Corp. and Nvidia Inc., among others. But those stocks came under pressure Thursday, erasing most of their gains.
Mizuho Securities managing director Jordan Klein wrote that it is too early to tell whether the Fed gave a green light for growth names to continue rallying. Hedge funds and long-only investors “will take a bit of a wait and see in the next few days,” he said…
Apple shares declined [4.21%] on Thursday, with the iPhone maker’s milestone $3 trillion market valuation proving more elusive. Microsoft fell [3.39%], Amazon.com slid [2.87%], and Nvidia shed [7.53%].
“Technology is going through a metamorphosis. It’s turning into a stock picker’s market,” Daniel Ives, a senior analyst at Wedbush Securities Inc. in New York, said in an interview. “The ‘work from home’ trade is in the rear-view mirror now that the Fed is raising rates.”
“While investors continue to fret about valuations, earnings growth is still two-to-three times on a normalized level for tech,” Ives said, adding that it will help “drive software, chip maker and cyber-security stocks higher.”

MacDailyNews Take: Yes, this too shall pass.
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
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