January 25, 2025 - 09:42
Wall Street's recent rally has hit a pause as major indexes are under pressure from disappointing performances in the semiconductor sector and rising uncertainty ahead of the Federal Reserve's first meeting of 2025. Investors are particularly focused on upcoming earnings reports from Big Tech companies, which are expected to provide insights into the sector's resilience.
Eric Freedman, the chief investment officer at US Bank Asset Management, shared his perspective on the market dynamics during a recent discussion. He believes that Big Tech will continue to thrive, driven by significant investments in technology. Freedman emphasized the ongoing trend of companies enhancing their capabilities through technology expenditures, particularly in areas such as data services and artificial intelligence.
He stated, "Until that cycle stops, that’s the place we want to be allocating capital." While he anticipates some moderation in expectations, Freedman maintains that the market remains a strong investment opportunity, asserting, "This is a market to own until proven otherwise." As investors navigate these turbulent waters, the focus remains on how Big Tech will perform in the coming weeks.
