Recently, there has been a significant pullback in large US technology stocks, prompting investors to consider whether they should take advantage of the opportunity to buy the dip. However, several Wall Street strategists have indicated that now may not be the best time to buy.
According to media reports on Saturday, Victoria Fernandez, Chief Market Strategist at Crossmark Global Investments, suggested investors to &#34;buy in small amounts in stages&#34; as the pullback may not be over yet. She said:
<blockquote>
I won't go all in until more companies report their earnings, as we may see more disappointing results.
</blockquote>
Despite a rebound in tech stocks on Friday, the &#34;Big Seven&#34; tech giants have still lost $540 billion in market value this week, with a total loss of $1.5 trillion over the past three weeks since July 8, marking the largest three-week decline in history.
In contrast, small-cap stocks have shown more resilience. The Russell 2000 index rose 3.5% this week, while the S&amp;P 500 index fell 0.8%. Over the past three weeks, the small-cap index has risen by over 11.5%, marking the best three-week gain since August 2022.
Disappointing earnings reports from Tesla and Alphabet this week have raised concerns in the market about overly high profit growth expectations for tech stocks. James Ragan, Director of Wealth Management Research at D.A. Davidson &amp; Co., stated:
<blockquote>
Several large tech companies will still report earnings in the coming weeks, and the key is whether their performance and full-year outlook are strong enough to attract investors back to these stocks.
</blockquote>
Apart from the tech industry, luxury goods giant LVMH also reported lower-than-expected sales this quarter, indicating that consumers are cutting back on spending in the face of high inflation and slowing economic growth.
Overall, analysts believe that given the high market expectations for perfect results, any signs of underperformance may trigger market concerns

The pullback may not be over yet, as several large technology companies will still release their financial reports in the coming weeks. The key lies in whether the performance and full-year outlook are strong enough

Bottoming out the Nasdaq? Maybe we should wait a little longer