Why tech stocks may continue to get pummeled

If tech investors were looking for a reprieve, they may have to wait a little while longer.

“What tech investors want is visibility into a calm economic environment,” Goldman Sachs managing director Eric Sheridan told Yahoo Finance Live at the Goldman Sachs Communacopia + Technology Conference on Tuesday.

“Tech, by its very nature, is a risk-premium, risk-on category of investing. And when people are uncertain about what’s the rate of inflation, what’s happening in the macroeconomic environment, what is the Fed going to do — it all trickles into the conversation and it creates uncertainty,” Sheridan said. “As a result, risk comes off, and names sell off in the group. So you really need a stable macro environment where people feel comfortable putting more risk back on in their portfolio.”

And investors in tech were rocked yet again on Tuesday by, you guessed it, a fresh dose of economic uncertainty.

The August Consumer Price Index (CPI) showed prices rose 8.3% over the prior year and…

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This article was written by and originally published on finance.yahoo.com