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The recent tech rebound seen on the Nasdaq may be short-lived, according to Jeremy Siegel, a finance professor at the Wharton School, CNBC reported Tuesday.
What happened: Siegel was far from bullish on the high-tech index, which gained nearly 3.7% on Tuesday to cap the best day since November.
Siegel associated higher interest rates and optimism over reopenings that continue to hamper growth stocks, according to CNBC.
“I don’t think they’re going to do it wrong. We are not going to have an accident at all like 20 years ago, ”said the professor.
“But I think the outperformers will be essentially non-tech over the next six to 12 months.”
Tech stocks rebounded on Tuesday, with Tesla Inc (NASDAQ: TSLA) up nearly 19.6% to $ 673.58 and gaining 2.32% in after-hours trading.
Tuesday, the so-called FAANG actions composed of Facebook Inc (NASDAQ: FB), Apple Inc (NASDAQ: AAPL), Amazon.com, Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX) and Google, a subsidiary of Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) were all in the green.
Facebook shares jumped nearly 4.1% to $ 265.74, Apple shares rose 4.06% to $ 121.08, and Amazon shares rose 3.76% to 3,062 , $ 85.
Netflix shares were closed up 2.66% at $ 506.44. Alphabet Class A and Class C shares rose 1.64% and 1.41% to $ 2,040.36 and $ 2,052.70, respectively.
Most of these stocks were smothered during the after-hours session.
Why is this important: The Nasdaq had fallen into corrective territory this week, with the Nasdaq 100 falling 11% from a record high a month earlier.
Siegel noted that the rise in long-term interest rates had not yet subsided, according to CNBC.
“So-called value stocks are going to be sought after for their yield because I think interest rates are going to be headed much higher here on long bonds again,” the analyst said.
He predicts the Dow Jones will hit 35,000 in 2021, almost 10% above Tuesday’s close.
Siegel remains bullish except on tech stocks and said “the stock market still has a way up,” according to CNBC.
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