JPMorgan: Tech stocks are expected to regain upward momentum and attract capital inflows

JPMorgan strategists stated that as investment crowding decreases, earnings performance remains strong, and valuations become more reasonable, technology stocks are likely to regain some of the upward momentum lost since the end of the first half of the year and attract investors to reallocate funds. In a report released on Monday, the team led by Mislav Matejka wrote that the momentum pause over the past three months has clarified positions and made stock prices more reasonable. Coupled with increased capital expenditures and continued earnings strength, "these factors should support renewed investor interest in the sector." So far this year, technology stocks have continued to significantly lead the S&P 500 Index, but in recent months, gains have slowed as concerns grow that the huge investments in artificial intelligence may not yield the returns optimistic investors expect. JPMorgan said while the gains seen in the first half of the year are unlikely to be repeated, opportunities remain. Matejka noted that renewed enthusiasm for technology stocks should boost Korea’s stock market and indirectly support emerging market stocks.