Strategist sees tech selloff as rotation of capital, not an exit from stocks

what happened

Kenny Polcari, partner and chief market strategist at SlateStone Wealth, described the current market move as a healthy rotation in an interview with Schwab Network. He said that despite pressure on technology, eight of the 11 S&P 500 sectors rose on Monday, including consumer discretionary, consumer staples, utilities and financials.

Polcari said the Nasdaq could slide to 24,000 points, about 5% below current levels. Some technology stocks, he noted, have already entered bear market territory with declines above 20%, but he sees a chance to buy, especially in larger high-quality names. Among his long-term picks he named Micron (MU), which he says he owns, and pointed out that Apple has hit new highs despite weakness in the sector.

According to Polcari, the S&P 500 market capitalization fell half a percent because of technology, while the equal-weight index gained 0.7%.

why it matters

The contrast between indexes matters for markets: cap-weighted benchmarks are being pulled lower by large technology companies, while equal-weighted measures reflect gains in other sectors. That is why the headline indexes can diverge sharply from the broader market.

instruments