Tech Stocks Poised for a Rally as Earnings Drive Momentum

Sit Investment Associates, a $15 billion fund house, believes that a market rally is on the horizon and advises investors to keep faith in Big Tech while also diversifying their portfolios. The chief executive and chief investment officer, Roger Sit, predicts a slowdown and a short recession, citing concerns such as waning consumer confidence and rising credit-card delinquencies. Sit expects interest rates to be cut from around 5.5% to 4.5% as a result. He suggests that as the market anticipates a slowdown and rate easing, there will be end-of-year gains and a broadening of tech-led gains. Sit's firm remains overweight on tech, particularly in companies like Nvidia, Taiwan Semiconductor, Alphabet, Amazon, Booking Holdings, Palo Alto Networks, Adobe, Salesforce, and Accenture. They also see opportunities in healthcare, energy, materials, and transportation sectors. Sit predicts the S&P 500 to end the year at 4,350.