Technology is lagging the major averages so far in the second quarter, with the sector falling 5 percent since April 1.
Gina Martin Adams, institutional equity strategist at Wells Fargo Securities, tells CNBC's "Power Lunch" on Monday her firm recently downgraded tech to market weight from overweight.
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"We are downgrading tech to market weight on emerging sector related economic and earnings weakness and deteriorating price momentum," Adams said.
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Within tech, Adams is staying away from hardware, storage and peripherals.
"IT software and services remains a bright spot for tech, with double-digit earnings growth, but much of the rest of the sector appears to be struggling with the global slowdown in tech sales," Adams said.
Tech is modestly higher during trading.
