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Wall Street Turns Cautious On Tech

16/04/2018 15:32:35 Stock Market
Three more brokerage firms have warned investors that the best days of the tech sector are over.Bank of America/Merrill Lynch and Morgan Stanley (NYSE:MS) told clients they see the sector heading lower, partly because of unsustainable valuations and the threat of new regulation in the wake of the Facebook (NASDAQ:FB) data scandal.BoAML said Internet stocks were in a bubble after a 600% gain over the past seven years.Morgan Stanley said it saw "early signs of weakness" in the sector around the time of fourth-quarter earnings. And RBC Capital Markets downgraded the tech sector to under-weight, saying it no longer expects it to lead the market.JPMorgan Chase (NYSE:JPM) first warned about tech valuations two weeks ago, advising investors to lock in profits after "years of outperformance."