Expect ‘a little more softness’ in tech in the near term

CFRA chief investment strategist Sam Stovall joins “Wealth” host Brad Smith to discuss his read of the current market (^DJI,^GSPC, ^IXIC), with a focus on his outlook for the tech sector (^SP500-45). “Technology is one of the three sectors within the S&P 500 that’s trading below its 50-day moving average,” Stovall says, explaining that the sector is recovering from the DeepSeek-fueled sell-off that hit the market last week. The strategist explains, “There’s probably going to be a little more softness in the technology space in the near term, but we’re maintaining our Overweight recommendation on the sector and think that it will be recovering by year-end.” While the market is trading at “a 20% premium,” Stovall notes, “Tech has been coming down and now moving much closer to its more normal PE [price-to-earnings ratio] range … we probably could do a little more digestion of gains in technology, but it’s also expected to be one of the strong areas of growth in earnings in the year ahead.” The strategist adds that “volatility is going to be part and parcel of any theme that one would be looking at” throughout 2025. To watch more expert insights and analysis on the latest market action, check out more “Wealth” here. This post was written by Naomi Buchanan.Read More