Persistent Inflation May Limit Fed Support for Tech Stocks, Says Moon Pursuit Capital Founder

According to Utkarsh Ahuja, founder of Moon Pursuit Capital, persistent inflation may limit the Federal Reserve's ability to provide monetary support for markets, even as technology stocks weaken, he said on November 10. Recent comments from San Francisco Federal Reserve President Beth Harker about potential further rate increases remind investors not to assume near-term Fed intervention, Ahuja noted.

For capital-intensive AI projects, higher financing costs and extended approval cycles could reduce returns even if market demand meets expectations. Companies without current cash flows that need to raise new capital face not only project execution risks but also uncertainty over future financing conditions, he added.

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