Marvin Loh, State Street senior global macro strategist joins Morning Brief to discuss how the tech sector (XLK) will be impacted by the Federal Reserve's rate-cutting cycle.

Loh believes that tech will be "one of the bigger beneficiaries" of the Fed's interest rate cuts. He notes that the sector has demonstrated strong earnings growth, and it is one of the few areas of the market that hasn't experienced significant revisions. "So that kind of stronger story is still out there. You know, quality growth generating cash and really defendable moats are kind of where you want to put some of your long-term bets," he tells Yahoo Finance.

He is bullish on AI, and believes that the technology will continue to drive valuations higher. Thus, if investors have exposure to these mega-cap AI players, he advises them to "sit tight, hold on," as "the story still has many chapters to be played out."

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This post was written by Melanie Riehl