Shares of technology companies fell sharply after the hotter-than-anticipated inflation data spurred a flight from risk.

There are valid concerns about valuations but investors would be misguided to sell out of the tech sector -- or the broad market -- because of valuation concerns alone, said one strategist.

"For Nvidia and stocks in general, yes, the forward earnings multiple is high," said Oliver Pursche, senior vice president at financial advisory Wealthspire.

"It's important to remember that, while valuation always comes into play, it's not a market-timing indicator. For four or five years in the 90s, valuations were very stretched -- much moreso than today. If you'd sold in 1995 because valuations were stretched, you would have missed out on a tremendous run."

The prospects of a rate cut in June all but evaporated after inflation accelerated to a 3.5% rate in March, well above economists' forecasts.

Shares of Tesla, which had been resrugent in recent sessions, fell by roughly 3%.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

04-10-24 1721ET