The sharp declines in US technology stocks, especially Israelis, are a preliminary indicator of an expected slowdown in Israeli economic activity.
There are signs that the local technology arena is already cooling down. As the geektime website reports, in March Israeli start-ups raised a lower amount than in March 2021 when April was one of the weakest months in recent years. There are also signs that there is a certain stagnation in the number of high-tech employee jobs.
At the same time, it is possible that this time the significant surplus savings in the private sector will soften the impact on the growth of a weakening in the technology sector. The general state of the labor market, which lacks workers in many areas, should also provide support for economic activity.
It should also be noted that the TA 125 index has disengaged from the sharp decline in Israeli technology stocks, in contrast to the long-term trend of a high correlation between them, it is difficult to expect a continued severance over the long term.