A wave of company earnings is hitting Wall Street this week, with 171 S&P 500 companies expected to report their results. Investors are watching closely to see how this will shake up the stock markets. State Street senior global macro strategist Marvin Loh joins to share his market outlooks on the Morning Brief.

Loh identifies the tech trade and its recent rotation as "a significant macro driver" in markets, noting the Nasdaq is "near correction territory." He believes this week's earnings reports will show if the market needs to fall further or if it's found its balance.

Even with recent weakness, Loh thinks there are still good reasons to own tech stocks noting "the fundamental reason why you own them hasn't changed that much." But he warns that valuations are too high, saying, "we all were concerned with how frothy everything got over the last month or so."

"When 12% revenue growth rates are not enough, it tells you that valuations certainly were starting to price in perfection and there's gonna be volatility around that," Loh told Yahoo Finance.

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This post was written by Angel Smith