Faith in Mega Tech’s growth is on the line this earnings season

Investors still believe technology is the best place in the stock market to find reliable revenue and profit growth. That will be tested this week.

The five largest US technology companies are set to report earnings, starting with Facebook Inc. on Monday. They could use a strong showing, as big tech’s market dominance faces threats from rising interest rates and slowing revenues.

The stocks remain expensive. The Nasdaq 100 Stock Index is just 2 per cent from a record high despite Friday’s decline.

“It is all about the ability of these companies to deliver on earnings,” JPMorgan Asset Management strategist David Lebovitz, who helps oversee $2.7 trillion in assets, said.