Swiss Bank CIO Forecasts A 'Healthy' Market Rotation Away From Big Tech Stocks
Portfolio Pulse from Benzinga Neuro
Charles-Henry Monchau, CIO of Bank Syz, predicts a market rotation away from major U.S. tech stocks, which could lead to a downturn for the 'magnificent seven' tech giants. These stocks, including Apple, Amazon, Alphabet, Meta Platforms, Microsoft, Nvidia, and Tesla, make up about 30% of the S&P 500's market cap. The S&P 500 recently ended a nine-week winning streak, with tech stocks underperforming. Monchau expects a technical recession in the first half of the year, followed by a recovery, with sectors like financials, energy, and healthcare showing potential. Scott Wren of Wells Fargo shares similar views on the market shift.
January 08, 2024 | 2:27 pm
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NEGATIVE IMPACT
Apple Inc. may face a downturn as market rotation moves away from big tech, with recent underperformance and challenges highlighted by analysts.
Apple's stock is likely to be negatively impacted in the short term due to the predicted market rotation away from tech stocks and its recent underperformance.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Amazon could see a decline as the market shifts focus from tech giants to other sectors showing recovery potential.
Amazon's stock may experience a short-term decline due to the broader market's rotation out of big tech stocks.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Alphabet could experience a downturn as the market rotates away from tech stocks, despite making up a significant portion of the S&P 500.
Alphabet's position in the market may be at risk in the short term due to the expected rotation away from large tech stocks.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Meta Platforms may face a downturn as market sentiment shifts away from big tech stocks towards other recovering sectors.
Meta Platforms is likely to be affected by the market's rotation away from tech stocks, leading to potential short-term stock price decline.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Microsoft may see its stock price affected by the market's rotation away from big tech, despite its significant market cap.
Microsoft's stock could face a short-term downturn as the market rotates towards sectors poised for recovery.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Nvidia's stock might decline in the short term as the market begins to rotate away from big tech stocks.
Nvidia, being one of the major tech stocks, is expected to be impacted by the market's rotation, potentially leading to a decrease in its stock price.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Tesla could undergo a stock price correction as the market rotates away from tech stocks, aligning with broader market trends.
Tesla's stock may be negatively influenced in the short term due to the market's shift away from big tech stocks.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80