Even with the steep pullback in AI names, the US stock market is poised to rely on the performance of technology shares — and investors are on guard for obstacles that could trip up the trade in the coming weeks.
\n\nA month-long swoon in technology and AI-related stocks culminated this week in the biggest one-day drop for the S&P 500 technology sector in over six years. Investors are concerned Democratic victories in the midterm elections would lead to slower data-center spending that has been at the heart of the market’s rally.
\n\nYet even with the drop, tech remains by far the biggest sector in the S&P 500, the benchmark index for the US stock market. Although its sway has diminished modestly, the tech sector still held a greater than 35% weight in the S&P 500 as of Thursday’s close.
\n\n”Because so much of technology is AI-sensitive, it’s going to have an impact on the entire sector, and that sector carries so much weight within the S&P 500,” said Robert Pavlik, senior portfolio manager at Dakota Wealth Management. ”So weakness in AI is going to drag down tech, which drags down the S&P 500.”
\n\nThe sector’s percentage of S&P 500 market…
Original source: https://www.cnbctv18.com/technology/
