Bigtech quotes are recovering. How these companies will survive the recession

In the second half of July 2022, shares of leading US technology companies rose sharply after falling at the beginning of the year. The combined market value of giants such as Apple, Microsoft, Alphabet (Google's parent company), Amazon and Tesla has increased by $1.3 trillion since the beginning of July 2022. As a result, the NASDAQ Composite High-Tech Index rose to 12,854.80 as of August 10, 2022, up 13% on the month.

Tech stocks rose on investors' hopes that the sector could weather the global recession. The management company Fidelity is confident that the demand for their products will continue in 2022. According to the investment fund Polar Capital, in 2022 the volume of IT spending will increase by 2-4% in dollar terms.

But the summer "tech rally" may be short-lived, writes The Financial Times. Investors should brace for a significant drop in earnings both in 2022 and next year, warns quantitative strategist at Société Générale Andrew Lapthorne.