Tech stock sell-off tests AI hype, but infrastructure investment cycle will go on

SINGAPORE – Technology stocks may have recovered from their worst monthly performance in years, but most analysts believe the July retreat – amid concerns about the mismatch between earnings growth and capital spending – signalled that investors are no longer betting that tech stocks will keep rallying. In the last week of July, large institutional investors – including top US hedge funds that had led the rally so far – unwound their exposure to tech stocks at an unprecedented pace. The 3.2 per cent decline made it the Nasdaq’s worst July performance in 20 years. At its lowest point on…