Expect more choppy action from Big Tech stocks: Analyst
Equity markets (^DJI, ^IXIC, ^GSPC) are rebounding, with the technology sector (XLK) at the forefront. CFRA Research Senior Equity Analyst Angelo Zino joins Catalysts to share his outlook on the tech market.
Zino notes that while tech has "led the way" in the market recovery, it remains "the worst performing sector" since July's market peak. Semiconductors experienced the most severe sell-off but have since shown the strongest gains and recovery. Looking ahead, Zino predicts "more choppy action" following this surge, expecting market volatility to persist for the next 2-3 months and through the election period.
He notes that earnings drive tech stocks and highlights two potential catalysts: Nvidia's (NVDA) upcoming Blackwell launch and the likely Apple (AAPL) iPhone 16 release. "Those are the two product launches that we think could potentially see more upside to consensus estimates," Zino states.
However, he cautions investors not to "expect anything too extreme here, at least in the immediate near term" from the tech sector.
For more expert insight and the latest market action, click here to watch this full episode of Catalysts.
This post was written by Angel Smith