Shares of Amazon, Meta and Alphabet all rallied last week after disappointing earnings, but investors looking to buy tech stocks on a dip should pause, according to strategist Dan Scott. Instead, market participants should wait for a noticeable shift from the Federal Reserve on interest rates, said Scott, head of multi-asset management at the Swiss asset manager. Vontobel, told CNBC on Friday. “We’re not going to remove the risk range and start buying technology because that’s likely not going to see a sustained recovery until you see the Fed pivot,” he said. ” he said, referring to interest rate guidance from the Fed. Scott points to the direction of “softening the language” from Neel Kashkari, the Minneapolis Fed president and the St. Louis Jim Bullard. However, he thinks that is not enough for the central bank to move away from its hawkish stance on raising interest rates. “We need the market to understand that we are at the end of a hiking cycle where we have some security as to where rates will ultimately end up before public stocks,” said the consultant, Scott. Technology can increase prices again. clients on $50 billion worth of assets. “We’re not there yet.” ‘The market wants to recover’ Scott is not alone in that view in the short term. Lizzie Evans, managing partner at Evans May Wealth, told CNBC on Friday: “I think it’s still too early to move into the mega tech sector. Instead, she expects more effects, such as a drop in the price-to-earnings ratio, in Big Tech stocks later this year. “We are seeing signs that the market wants to recover, but we are struggling between the Fed’s words and higher interest rates,” she added. Evans said the stock market could rise 5-15% by year-end if the Federal Reserve raises interest rates by 50 basis points in December, but warned that is unlikely. Markets are expecting interest rates to rise 75 basis points on November 2, with a similar increase on December 14. As borrowing costs rise and the global economy slows, companies Tech companies – known for their higher double-digit growth in recent years – reported lackluster forecasts. Amazon shares plummeted 13% in extended trading Thursday after the company made a disappointing forecast. Meta also lost nearly a quarter of its value on Thursday, bringing its stock back to levels seen in early 2016. Shares of Alphabet, Google’s parent company, closed 8% lower the following Tuesday. when the company revealed the state of its advertising business was slowing down. To maintain their margins in a difficult macro environment, the tech giants are now focusing on controlling costs. Meta and Salesforce are among a number of Silicon Valley companies that have slowed their hiring this year, while Coinbase, Netflix and others have had to lay off employees. Vontobel’s Scott said Amazon’s results and subsequent share price reaction show the extent to which investors are focused on the tech companies’ future growth trajectory. “15 percent revenue growth – that’s amazing. That’s what I’m looking for in tech stocks. The problem is outlook: 2-8% growth isn’t what I’m looking for in stocks. technology,” he said.