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erienewsnow.com 10 Jan, 2022 22:45 am

Dow falls nearly 165 points, but tech stocks make a huge comeback - Erie News Now

Dow falls nearly 165 points, but tech stocks make a huge comeback - Erie News Now
By Paul R. La Monica, CNN Business

Growth stocks in particular have been pummeled so far this year due to fears about inflation slowing the economy.The SPDR Portfolio S&P 500 Growth ETF is down 4% already in 2022 while the iShares Russell 2000 Growth ETF, which owns shares of smaller growth stocks, has plunged 6."If the first week of the year is any indication of what to expect over the coming months, investors will have to be nimble in 2022, and be aware of any outsize exposure they may have to growth stocks," said Solita Marcelli, chief investment officer of the Americas at UBS Global Wealth Management, in a report Monday.But the prospect of higher rates will be a problem for tech and other growth stocks going forward.

"Technology stocks have led the market for most of the past two years," said analysts at the Morgan Stanley Wealth Management Global Investment Committee in a report Monday."Global policy tightening has outweighed Covid's estimated toll on economic growth, and tech has begun to underperform," the Morgan Stanley analysts wrote, adding that now is a time when investors should try to actively pick stocks stead of passively relying on the big indexes that are dominated by the tech leaders.

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