Licking the blood on the edge of the knife is inevitable, and the technology sector is the area with the highest risk. Perhaps fear of heights is not unfounded in this field.

Bets on the Federal Reserve continuing to cut interest rates have pushed the riskiest sector of the technology sector higher, sparking concerns in the market about possible reversals in related stocks. A basket of unprofitable technology stocks tracked by UBS Group has surged 22% since the end of July, while profitable technology stocks have only risen 2.5% during the same period, with the Nasdaq 100 index up by 5.9%. This surge has brought the index close to its highest point since the end of 2021, when ultra-low interest rates fueled a speculative asset bubble that burst the following year. On Wednesday, a basket of loss-making technology stocks rose by 0.7%, while a basket of profitable technology stocks rose by 0.4%.