David Smith Weighs in on Economic Uncertainty and Tech Stock Pullback in CNN Business

As reported by CNN Business, US markets closed out a turbulent February, with concerns over economic growth and inflation leading to increased investor caution, particularly in the tech sector. The Nasdaq, heavily weighted toward technology stocks, suffered its worst monthly decline since April 2024, falling 4%.

David Smith, an economics faculty member at Pepperdine Graziadio Business School, pointed to a shift in investor sentiment, as fears of economic deceleration pushed many to seek safer investment options.

“Concerns about potential economic growth deceleration may be fostering increased risk aversion, potentially leading investors to shift away from the more volatile Nasdaq index in favor of more stable investment options,” Smith told CNN Business.

The market’s downturn coincided with a slowdown in consumer spending, which posted its biggest monthly decline since February 2021. Additional uncertainty surrounding AI investment and economic policy further fueled volatility, leading some analysts to advise investors to prepare for continued fluctuations in the months ahead.

Despite the recent pullback, markets remain near record highs, with some experts attributing the declines to seasonal volatility rather than a long-term trend. However, with economic uncertainty looming, investors are expected to remain cautious as they navigate the evolving financial landscape.

Read the full article here.