US Stock Market Expected to Broaden as Tech Consolidates This Summer
- The tech sector has rallied by 18% over the past eight weeks.
- Mark Newton predicts a consolidation phase for tech in June and July.
- Financials, industrials, consumer discretionary, and healthcare are poised for growth.
- The XHS healthcare services ETF recently reached new all-time highs.
Newton emphasizes that while the overall market isn’t overextended, caution prevails among investors due to Federal Reserve leadership changes and geopolitical tensions. Investors lacking exposure to semiconductor stocks have struggled against the S&P 500’s performance.
With a potential consolidation in tech anticipated between July and October, this may present buying opportunities ahead of midterm elections. The shift could lead to broader market participation beyond just technology stocks. (Source)
