Is the U.S. Tech Rally Overdone?

Year-to-date, Nasdaq has risen by 20.42%, but this increase has not been accompanied by an increase in the company's profitability, but more of a premium at the valuation level.

Well-known short Michael Wilson believes that the more than 20% increase in technology stocks is not sustainable, and the industry will return to new lows. Tech stocks are actually more pro-cyclical, bottoming along with the broader market in bear markets. He recommends waiting for broader market lows before buying technology stocks.

JPMorgan strategists also said that the technology industry has earnings risks and valuations are unattractive, and the industry will stop outperforming the broader market.