Tech sector pressures could be 'good news,' strategist says
The tech sector (XLK) is under pressure as investors await Nvidia's (NVDA) highly anticipated second quarter results. Concerns are mounting over whether the semiconductor giant can meet Wall Street's lofty expectations. Principal Asset Management chief global strategist Seema Shah joins Morning Brief to discuss the market outlook and what future interest rate cuts could mean for the tech sector. Shah notes that the second quarter earnings season has shown that the strong earnings performance, once concentrated within Big Tech, has "started to broaden out to other sectors." She interprets this as a reflection of healthy economic growth and "a healthy improvement in the market," adding that "this is good news." "What we generally want to see, though, for a healthy equity market, is that you're seeing performance that is spread out across a number of sectors rather than just being driven... by the Magnificent Seven or a couple more tech companies," Shah explains. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith Follow along with Yahoo Finance's latest coverage of Nvidia ahead of its earnings this week: Nvidia earnings are almost here. What investors will look forWhy Nvidia's stock rally is not driving broader market gainsNvidia earnings highlight a busy end of August: What to know this weekIf you don't own Nvidia stock, you are missing a revolution, tech investor saysNvidia earnings: One top tech analyst's key metric to watchNvidia gets ready to take over the stock market (again)Nvidia earnings: Rationality is out the window, analyst saysNvidia vs. Alphabet: Strategist picks which to buy & avoidNvidia investing 'aggressively' in R&D: Analyst explains whyNvidia earnings: Options market predicting $300 billion swing in stockNvidia still the best AI chip play right now: AnalystNvidia earnings: What the options market is anticipating4 AI terms Nvidia investors should knowNvidia earnings 'absolutely key to the AI infrastructure trade'
