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Art Cashin: Market may have a current running against it for a bit

  • U.S. equities fell on Thursday, with technology leading the way and washing out gains from the big banks.
  • Art Cashin thinks key for the market is interest rates and the slowdown of central bank money into the market.
  • David Sowerby said in this current environment, a little bit of profit taking is wise — and then buy at some better valuations in the market.

The U.S. stock market may be facing some headwinds ahead, veteran trader Art Cashin told CNBC on Thursday.

He believes it all comes back to rising interest rates.

"The central banks were your friend. They were pumping money in. They appear to be slowing down and coincident with that some of the corporate buybacks appear to be slowing down. So the market may have a current running that is against it for a little bit here," the director of floor operations at UBS Financial Services said in an interview with "Closing Bell."

U.S. equities fell on Thursday, with technology leading the way and washing out gains from the big banks.

"Tech stocks looked like a trap door opened underneath them" and then "dragged everything right down with them," Cashin said.

Shares of Facebook, Amazon, Netflix, Apple and Google-parent Alphabet all dropped more than 1 percent. Chip stocks also fell, with Nvidia and Advanced Micro Devices closing 3.3 percent and 4.8 percent lower, respectively.

The Dow Jones industrial average fell 168 points with Apple, Boeing, and 3M contributing the most losses. Bank stocks, meanwhile, jumped after the Federal Reserve cleared capital returns for the big banks.

"People talk about a little sign of rotation in that the financials are up and some of the energy stocks are up but they are up nowhere near as much as what the techs and other things are down," noted Cashin.

David Sowerby, portfolio manager at Loomis Sayles and Co., believes the market was due for a pullback.

"In this environment, a little bit of profit taking here as we begin to start the third quarter, I think that's the wise thing to do and then buy at some better valuations in the market," he told "Closing Bell."

Stephanie Link, equity portfolio manager at TIAA Investments, thinks there has been a "tone change" in the market over the last couple of weeks.

"More value, little bit more volatility, little bit more cyclical. There's only so long that the FANG-plus stocks could account for 60 percent of the returns," she said in an interview with "Closing Bell."

However, she wouldn't read too much in the market's action because it's the end of the month and people are on vacation. She believes tech will have good earnings, so there will be places to pick spots and add to them.

Looking ahead, the second part of the year will be largely dictated by earnings season, said Paul Hickey, co-founder of Bespoke Investment Group.

—CNBC's Fred Imbert contributed to this report.

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Watch: Cashin says Nasdaq collapsed, everything else followed