US stock turbulence throws spotlight on Big Tech’s valuations

A bruising selloff in U.S. stocks is putting a sharper focus on valuations of the tech names such as Nvidia and Microsoft that have driven markets higher for most of this year.

Despite a recent pullback, the S&P 500 tech sector is trading at 29.5 times 12-month earnings estimates, near a two-decade high reached earlier this month. The overall market is also elevated historically, with the benchmark S&P 500 index trading at 20.7 times forward estimates, compared to its long-term average of 15.7, data from LSEG Datastream showed.