Fundstrat Reportedly Calls Recent Pullback A Buying Opportunity: ‘It Looks Too Early To Give Up On Technology’

• Mark Newton said recent weakness in the market’s largest technology stocks does not signal a breakdown in trend support. 
• As tech giants increase their capital expenditures, investors have begun to worry about valuations. 
• Newton remains confident that the tech sector’s uptrend will soon resume.

Market research firm Fundstrat reportedly believes the latest downturn in technology stocks could offer investors a timely buying opportunity. 

According to a CNBC report, Mark Newton, the firm’s head of technical strategy, stated that despite this week’s steep declines across leading tech names, the broader sector remains intact and is positioned for a rebound.

Buying The Tech Dip 

Newton said recent weakness in the market’s largest technology stocks does not signal a breakdown in trend support. 

“It looks too early to give up on Technology,” he added, noting that while some members of the “Magnificent Seven” have slipped, the sector’s overall structure remained technically sound.

At the time of writing, shares of Nvidia Corp (NVDA), Alphabet Inc. (GOOGL), Meta Platforms Inc. (META), and Tesla Inc. (TSLA) were trading in the red. 

With tech giants ramping up their capital expenditure to ramp up as much AI infrastructure as possible, investors have started to worry about valuations. 

However, Wedbush Managing Director Dan Ives called out pessimists on Wall Street for underestimating the ongoing boom in U.S. equities driven by artificial intelligence.

Tech Pullback Accelerates 

According to the report, the Technology Select Sector SPDR Fund (XLK), which tracks the S&P 500’s tech sector, has fallen 3.8% this week through Thursday’s close, its sharpest drop since early April. Other popular stocks like Super Micro Computer Inc. (SMCI) and Palantir Technologies Inc. (PLTR) have suffered double-digit percentage losses.

Still, Newton remains confident that the tech sector’s uptrend will soon resume. He pointed out that major players like Alphabet and Apple Inc. (AAPL) show ‘precious little damage’ despite volatility, according to the report. 

Also See: Wendy’s Interim CEO Projects International Net Unit Growth Of Over 9%: ‘Momentum Continues To Build’

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