“Investors are selling the winners and where the momentum has been,” Mark Stoeckle, chief executive of Adams Funds, told the Wall Street Journal. “We’re trying to stay really disciplined and make sure we’re not overreacting to what the market’s doing, but this is always a hard environment.”
Technology stocks have been a major contributor to the ongoing rally, but tightening monetary outlook has many taking a second look at the high flying segment. Many of these growth-oriented tech names have enjoyed the swift rally under an easy-money, post-financial-crisis environment but the easy times is coming to an end, and investors are re-evaluating the play.
“I do not think, necessarily, it’s the beginning of a much larger breakdown. I think the broader market feels better; tech is going to come under pressure as people use it to reallocate cash,” Kenny Polcari, managing director O’Neil Securities, told CNBC.
For more information on the markets, visit our current affairs category.