Schroder: Currently, the valuation of US stocks is too high. Pay close attention to whether the earnings and growth momentum of the "Big Seven" in technology are matching

US tech stock valuations are too high, Schroders' quantitative stock research team calls for close attention to whether the earnings and growth momentum of the "Big Seven" in technology are matching. By early 2024, the US technology sector's weight in the local stock market index has reached a historical high, but currently the fundamentals of the technology sector are strong, with significant impact on the financial markets. Schroders believes that in 2024, there will be rotation in the financial markets, with increased volatility and fewer favorable factors for overall market returns. US stock index valuations are not attractive, with the S&P 500 index forecasted price-to-earnings ratio nearly 20% higher than its 15-year median