Big Tech stocks are in positive territory following sell-off woes, now pushing the market indexes (^DJI, ^IXIC, ^GSPC) higher in a slow recovery effort. In a note, Barclays Head of US Equity Strategy Venu Krishna wrote that tech leaders are in "the penalty box" at this time.

Krishna joins the Catalyst team in-studio to talk about the refocus on AI monetization while tech stocks are trading increasingly higher than their earnings.

"If you look at Meta (META), they posted very good numbers on digital ads. If you look at Amazon (AMZN), they posted very good numbers on their AWS side. And so if you look at individual names, they are checking the box," Krishna tells Yahoo Finance. "But clearly as the focus changes on onto the monetization of AI, from here on you don't want to pay very high multiples and you want to see actually the monetization showing up in earnings. And clearly this is a secular trend..."

Krishna goes on to give his year-end forecast for the S&P 500 (^GSPC) and communicate how he sees the rest of the market (^DJI, ^IXIC) reacting to third quarter earnings forecasts.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Luke Carberry Mogan.