US Stock Market Could Broaden As Tech Sector Looks Primed To Consolidate This Summer: Fundstrat’s Mark Newton

3 1 minute read

Fundstrat Technical Strategist Predicts Market Broadening Beyond Tech Stocks

Fundstrat technical strategist Mark Newton recently shared his insights on the US stock market, suggesting that the market is poised to expand beyond the realm of technology stocks. Newton warned that the tech sector, which has experienced an impressive 18% rally in just eight weeks, is likely to consolidate throughout the summer as it has become “overextended.”

In a recent interview, Newton pointed to financials, industrials, consumer discretionary, and healthcare as sectors that are well-positioned to gain ground as technology takes a breather. He highlighted the XHS healthcare services ETF breaking to new all-time highs as a positive sign of this broadening trend.

“I am optimistic that we can start to broaden out. I do suspect that technology is going to need to consolidate at some point in June and or July. Difficult to see an 18% rally in 8 weeks just continue at the same pace. It’s highly unlikely, and we’re going to need to consolidate.”

Despite concerns about a leadership transition at the Federal Reserve and geopolitical tensions, Newton emphasized that the overall market is not overextended. He noted that investors who have not had exposure to high-weighted semiconductor and memory stocks have struggled to keep up with the S&P 500.

Looking ahead, Newton expressed a positive outlook, stating that he is not bearish and anticipates that the consolidation in the tech sector between July and October will present buying opportunities leading up to the midterm elections.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Surf The Daily Hodl Mix

Generated Image: Midjourney