News The Balance Today: News You Need To Know on Oct. 26, 2022 Why You Shouldn’t Sell Big Tech Stocks Sliding on Earnings By Kristin Myers Kristin Myers Instagram Twitter Website Kristin Myers is an award-winning journalist and Editor-in-Chief of The Balance. She previously anchored Yahoo Finance Live, where she also created and hosted "A Time for Change,” a weekly program that explores race, diversity, and inclusion in the world of business, finance, and politics. Kristin holds a master of arts in international journalism from Cardiff University, and a bachelor of arts in English from the University of Pennsylvania. learn about our editorial policies Published on October 26, 2022 Fact checked by Mrinalini Krishna Fact checked by Mrinalini Krishna Twitter Mrinalini is the senior investing editor at The Balance and is an expert in investing, financial journalism, digital media, and more. She's been a journalist for more than 10 years at organizations such as the Financial Times and Investopedia, and she has a master's in business and economic reporting from New York University. learn about our editorial policies Share Tweet Pin Email Photo: Nitat Termmee / Getty Images Today might not be the day to look at how your investments are performing if you’re heavily invested in the tech sector. Shares of some of the most widely held tech stocks like Google parent Alphabet and Microsoft are falling on the heels of their latest earnings reports. The tech sector has been struggling as the Federal Reserve continues to hike interest rates to lower inflation. How does the Fed impact tech companies? Higher interest rates take big bites out of future growth for companies. For companies that experience aggressive growth very quickly (like tech companies), higher rates have a bigger, more negative impact. So this week, expect volatility in markets, especially as tech companies highlight weakness due to the current economic environment. You might be wondering: Should I sell my tech stocks? And the answer is no. Investing for the long term means looking beyond quarterly earnings, and bad stretches in the market (which could last months or longer). But it does mean that if you are very heavily invested in tech, it might be time to consider approaching your portfolio with more balance. While sectors like utilities and consumer staples might not be as exciting, they could help mitigate some of the risk in your investment portfolio. Sliding Home Sales Over in the housing sector, sales of new residential homes dropped yet again as prospective buyers say “no thanks” to higher mortgage rates and house prices. New home sales dropped nearly 11% in September from the month prior and are 17.6% lower than last year. In a further sign that the real estate market is struggling, mortgage applications dropped 3% from the prior week, while the number of mortgage applications are 42% lower than last year according to the Mortgage Bankers Association. Mortgage rates continue to be the culprit, with the average rate on a 30-year fixed-rate loan sitting higher than 7%, the highest rate since 2001. While home prices and mortgage rates probably aren’t where you’d like them, this does mean that if you’re an interested buyer, the power is starting to shift back into your hands. This also makes the possibility of negotiation more likely. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Fidelity Investments. "What’s next for tech?" U.S. Census Bureau. "Monthly New Residential Sales, September 2022." Mortgage Bankers Association. "Mortgage Applications Decrease in Latest MBA Weekly Survey."