Tech Stocks Outperform on Back of Earnings

Core Insights - The Bank of England is investigating data center lending due to concerns about potential air bubbles in the market [1] - There is a shift towards increased debt issuance among hyperscalers, which may indicate a broader range of financing is needed to meet investment targets [3] - The expected spending on data centers and computing is projected to reach $5 trillion by 2034, highlighting significant investment opportunities [5] Debt and Financing - The current market sentiment suggests a need for more aggressive debt issuance to support growth in the data center sector [4] - Active credit managers see opportunities in the credit market, but caution is advised due to tight spreads, which may pose valuation risks [6] Earnings and Market Valuation - Intel's recent performance indicates strong PC segment shipments, despite initial concerns about tariffs, suggesting resilience in earnings [7][8] - The overall market is experiencing high valuations across most sectors, with many companies in the ninth and tenth deciles of valuation relative to their historical performance [13][14] - Healthcare is identified as a more attractively priced sector with potential for growth, despite facing challenges [16]