The QQQ ETF, which tracks the Nasdaq-100, has remained flat since Memorial Day, while the VanEck Semiconductor ETF and the Roundhill Magnificent Seven ETF have seen slight declines. In contrast, the S&P 500 has risen about 3% during the same period.
Analysts are anticipating a shift in market dynamics as September brings significant events, including a Federal Reserve rate decision and an Apple product launch. Dan Ives from Yorkville Ives predicts a 'catch up trade' in tech, particularly in infrastructure and cybersecurity, as the iShares Expanded Tech-Software Sector ETF has gained over 9% since Memorial Day.
Additionally, the DRAM ETF, focused on memory stocks, has surged 16%. Tina Byles Williams from Xponance highlights the ongoing demand for computing power tied to AI, despite challenges in data center infrastructure. Nicolas Janvier from Columbia Threadneedle points to strong earnings growth in small-cap stocks, suggesting they may continue to outperform large caps.
Jimmy Lee from Wealth Consulting Group believes a Fed rate hike is unlikely and sees potential in the housing market as rates stabilize. Michael Persaud from Morgan Stanley advocates for increased exposure to commodities like gold and silver amid economic uncertainties.
Ultra-high net worth investors remain optimistic about US equities, with a significant portion of their portfolios concentrated in tech stocks. Long Angle's poll indicates a strong preference for Alphabet as a long-term investment, while Charlie Garcia from R360 emphasizes defense stocks amid geopolitical tensions.
Overall, the article suggests that while tech has faced challenges, there are emerging opportunities across various sectors as investors prepare for a potentially impactful September