Mark Newton, an analyst at a fund run by Tom Lee, said in a CNBC interview on Oct. 18 that the current pullback offers a chance to buy technology stocks on weakness, while warning that investors should remain diversified and be ready for sector rotation. He said cross-asset volatility has picked up sharply over the past month, with the S&P 500 recently down about 6% and the tech sector also seeing a notable pullback over the past week. Even so, compared with the gains posted in September, Newton said the damage to tech stocks remains relatively limited. He described this year’s market as one defined by rotation, with energy rising nearly 40% first, then leadership spreading to technology, and now shifting toward healthcare, which has reached record highs. Interactive Brokers chief strategist Steve Sosnick added that investors may still carry sizable tech exposure through S&P 500 index funds even if they have not made a direct AI allocation, and said he is concerned about continued weakness in tech shares and growing questions around returns on AI investment.
BlockBeats reported on Oct. 18 that Mark Newton, an analyst at a fund run by Tom Lee, said in an interview with CNBC that this is a reasonable time to buy technology stocks on dips, though investors should stay diversified and prepare for sector rotation.
Newton said cross-asset volatility has increased sharply over the past month. The S&P 500 has recently pulled back about 6%, and the technology sector has also seen a clear correction over the past week. Still, he said the damage to tech shares remains relatively limited when compared with the gains recorded in September.
He said the market this year has consistently been driven by sector rotation. Energy rose nearly 40% at the start, leadership then spread to technology, and the move has now shifted to healthcare, which has reached fresh record highs. In his view, investors need to be ready for those shifts and keep portfolios diversified.
Steve Sosnick, chief strategist at Interactive Brokers, also warned that investors may have significant technology exposure through S&P 500 index funds even if they have not actively allocated to AI. He said sector rotation still dominates the market, but he is concerned about a continued decline in tech stocks and the possibility that investors begin to question the return on AI investment.
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