U.S. tech stocks crash in first half

Societe Generale pointed out that, relative to other sectors, technology stocks have now become dependent on valuation inflation.

FAANG stocks are continuing to trade at 30 times PE valuations, compared to 22 times earnings for the S&P 500 so far this year. However, without the support of earnings growth and poor market breadth, unlike other markets, the S&P 500 is dominated by technology stocks (FAANG stocks), and if the technology bubble is burst, the entire market will "collapse".

The deterioration in the breadth of the Nasdaq is also a problem, not seen since the tech bubble peaked.

Only 40% of the 300 Nasdaq stocks are trading above their 200-day moving averages, according to the data.