Omicron May Make Megacap Tech Even More Expensive
- Nasdaq 100 bounces after Friday’s rout, led by big tech
- Strategists recommend buying the dip for tech’s resilience
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Megacap tech stocks are already pricey, but the omicron coronavirus strain may make them even more expensive given their defensive characteristics.
Strategists say the group has the potential to outperform from here due to expectations for interest-rate hikes being pushed back and the focus turning to stocks that can prove shockproof. The tech heavy Nasdaq 100 Index, home to the likes of Apple Inc. and Microsoft Corp., opened 1.5% higher on Monday, outshining the S&P 500, after Friday’s brutal selloff.