Fundstrat’s Mark Newton says investors should buy the tech dip while staying diversified. Artificial intelligence (AI) cloud provider CoreWeave, down 15% at one point, still faces higher bond yields over its debt.
The equal-weight S&P 500, which gives every company the same weight, fell about 6%. The headline S&P 500, by contrast, hit a record only seven trading days before the interview.
Is the Tech Dip a Buying Chance or an AI Warning Sign?
Newton, global head of technical strategy at research firm Fundstrat, told CNBC that 2026 has been defined by rotation.
Healthcare stocks have just reached record highs. The rotation began with an almost 40% energy rally, then moved through tech.
Newton said volatility across asset classes has picked up over the past month.
Tech fell sharply last week, yet in his view it has given back little of September’s run.
Still, he said investors need diversification to handle the sector shifts.
Can AI Returns Keep Outrunning Borrowing Costs?
CoreWeave’s stock turned positive on Thursday after that drop. Concerns persist over how much debt it needs to fund its AI buildout.
Meanwhile, chip and memory stocks stayed weak, including Seagate, Western Digital, Intel, and South Korean chipmaker SK Hynix.
Steve Sosnick, chief strategist at brokerage Interactive Brokers, said faith in AI returns has carried stocks through rising bond yields.
If investors believed the payoff was limitless, he said, financing at 9% or even 20% would barely matter.
However, he sees CoreWeave as a sign that doubts about those returns could take hold.
Sosnick estimates S&P 500 index funds hold 45% or more in technology.
If tech stocks are sold, ETF and index fund selling could follow and feed a downside momentum trade, he warned.
“we are all heavily invested in AI whether we want to be or not.”
Steve Sosnick, chief strategist at Interactive Brokers, via CNBC
On Sosnick’s numbers, tech’s 45%-plus weight ties index returns to AI payoffs outrunning borrowing costs.
