Friday, 9 May 2025 Reading time : 2 minutes

The recent market correction on Wall Street has hit tech giants particularly hard. While the overall US market, as measured by the S&P 500, lost 18.8% (including dividends) between its all-time high in mid-February and its low for the year on 8 April, the Nasdaq 100 technology index lost 22.8% over the same period. The Magnificent 7 - Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta Platforms and Tesla - corrected even more sharply, falling more than 26%.

"In a stock market correction, the most expensive sectors of the market are often punished disproportionately," economists at Zürcher Kantonalbank write. This has led to a normalisation of valuations for technology stocks.

The US stock market has recovered from the setback and is now trading close to where it was before US President Donald Trump threatened to raise tariffs.

However, the rally has been uneven, as a look at the technology sector shows. Microsoft shares have risen sharply in the past two weeks and are approaching their high for the year at the end of January. Alphabet, Apple and Meta Platforms, on the other hand, are recovering more hesitantly and are still trading significantly lower than before the market turmoil.

Barrier reverse convertibles on technology laggards allow investors to optimise returns, while low barriers partially mitigate price losses.

Barrier Reverse Convertible on US Technology Stocks
USD
12.75% p.a. BRC on Alphabet, Apple, Meta Platforms
Barrier: 55%
Valor: 142 532 237

CHF Quanto
10.75% p.a. BRC on Alphabet, Apple, Meta Platforms
Barrier: 59%
Valor: 142 532 238

Indicative terms

 

Disclaimer
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