The tech market has continued to recover in the past week of August as fresh economic data gives growth stocks a boost. Treasury yields drop after new data shows consumer confidence waning.
The sector has faced a difficult month after the benchmark yield for the 10-year Treasury note reached its highest level since 2007 last week.
Things seem to have taken a turn, however. On Tuesday, the yield on the 10-year Treasury yield fell 10 basis points to 4.113 per cent as fresh economic data suggested that the Fed may be close to done lifting interest rates.
The tech-heavy Nasdaq climbed more than one per cent on Tuesday in response to the news.
It was not good news for everyone, however.
The share price for AI data firm Appen fell off a cliff after the firm released a clanger of an H1 2023 result.
The half-year results showed that Appen’s revenue had dropped 24 per cent to US$138.9 million.
This led to an underlying operating loss of US$15.7 million, down considerably from last year’s underlying EBITDA of US$9.6 million.
Appen said the company’s results reflect a challenging macro environment as it continues to face headwinds from the broader technology market slowdown and as customers evaluate their AI strategies. Appen has seen 14 peak-to-trough falls of more than 20 per cent over the past five years, and five in the last 12 months alone.
Macquarie Telecom fell 5.03 per cent. The stock’s recent rally was followed by a downturn as investors cashed in their gains.
The share price for Nvidia continued to climb this week following its announcement that its revenue had exploded by 88 per cent compared to the previous quarter. Its share price increased 6.32 per cent to $487.84 for the 5 days ending Wednesday.
The company announced a partnership with Google that will involve its technology being sold through Google’s cloud.
Meanwhile Meta, Apple, Atlassian, Alphabet and Adobe all saw gains in response to the improving tech environment.
Meta saw an increase of 3.25 per cent, as did Alphabet. Adobe lifted 3.19 per cent.
Microsoft saw a smaller increase of 1.39 per cent.
The market’s attention now turns to Friday’s US nonfarm payroll figures. August’s employment data could reignite fears about inflation or raise concerns regarding the impact of potential interest rate hikes on the economy.
|Company||Opening price||Closing price||Change (%)|
|Macquarie Telecom Limited (ASX: MAQ)||$69.71||$66.20||-5.03%|
|REA Group (ASX: REA)||$161.43||$163.93||1.54%|
|Atlassian (NAS: TEAM) (USD)||$190.29||$198.90||4.52%|
|Xero (ASX: XRO)||$120.49||$122.80||1.40%|
|Carsales.com (ASX: CAR)||$27.62||$27.93||1.18%|
|NEXTDC (ASX: NXT)||$13.77||$13.33||2.67%|
|WiseTech Global (ASX: WTC)||$69.77||$70.86||0.92%|
|Appen (ASX: APX)||$2.23||$1.59||-30.94%|
|Airtasker (ASX: ART)||$0.20||$0.195||-2.50%|
|Telstra (ASX: TLS)||$4.05||$3.97||-1.60%|
|Adobe (NAS: ADBE) (USD)||$523.84||$540.57||3.19%|
|Salesforce (NYSE: CRM) (USD)||$208.00||$211.96||1.90%|
|Apple (NAS: AAPL) (USD)||$179.88||$184.12||3.11%|
|Alphabet (NAS: GOOGL) (USD)||$130.33||$134.57||3.25%|
|Meta (NAS: META) (USD)||$288.60||$297.99||3.25%|
|Microsoft (NAS: MSFT) (USD)||$323.86||$328.36||1.39%|
|Amazon (NAS: AMZN) (USD)||$134.60||$134.91||0.23%%|
|Nvidia (NAS: NVDA) (USD)||$458.82||$487.84||6.32%|
|Samsung (SMSN:LI London Intl (USD)||$1,242.00||$1,271.00||0.87%|
|Netflix (NAS: NFLX) (USD)||$419.00||$429.99||2.62% |
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