Even if AI development ultimately meets investors' expectations, US tech stocks could still undergo a correction, potentially threatening financial stability in the euro area, European Central Bank (ECB) economists said in a blog post.
A correction in the tech sector would not necessarily be caused by previous investor hype, and such a pullback would still be expected even if current valuations are at reasonable levels.
The economists noted that households in the euro area have around EUR440 billion of exposure to US tech stocks, mainly through investment funds, while insurance companies and pension funds also have significant exposure to the "Magnificent 7".
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AASTOCKS Financial News
Website: www.aastocks.com
| SG Top Picks |
| Stock & Type |
Code |
Strike(Call Level) |
Last |
Effective Gearing |
| Nvidia (C) |
11185 |
275 (-) |
0.137 |
7.0 X |
| Nvidia (P) |
11090 |
168 (-) |
0.078 |
5.8 X |
| MSFT (C) |
11136 |
450 (-) |
0.660 |
8.2 X |
| MSFT (P) |
11064 |
390 (-) |
0.024 |
16.6 X |
| APPLE (C) |
11132 |
300 (-) |
0.249 |
11.6 X |
| APPLE (P) |
11063 |
248 (-) |
0.012 |
17.8 X |
| AMZN (P) |
11137 |
180 (-) |
0.040 |
7.0 X |
| ALPBE (C) |
11184 |
470 (-) |
0.069 |
9.5 X |
| TSLA (P) |
11135 |
330 (-) |
0.560 |
3.7 X |
| META (C) |
11069 |
830 (-) |
N/A |
N/A |
| META (P) |
11138 |
475 (-) |
0.350 |
5.3 X |
