Tech tumbles again — three experts weigh in on whether the rout continues

Technology stocks' painful sell-off dragged into another session on Monday.

FANG stocks Amazon, Netflix and Alphabet tumbled by more than 1 percent, while industry leader Apple fell 2 percent. The XLK technology ETF has tanked more than 8 percent since hitting the year's highs in early October.

Here's what three market watchers expect from the sector after recent weakness:

  • John Stoltzfus, chief market strategist at Oppenheimer Asset Management, says investors will jump back into a space that is now cheaper than before. "Intermittently it gets some bad news, people think tech has had it, but the multiples have really dropped after last week. Likely people will come back into the story. It remains solid to us," said Stoltzfus.
  • Scott Wren, senior global equity strategist at Wells Fargo Investment Institute, says this is a normal market rotation that should circle back to growth stocks such as tech. "From time to time when you're later in the cycle and there's a little more inflation and a little bit more growth and the Fed's hiking rates, you're going to have some bouts of value outperformance, but I think overall those would be pretty brief," said Wren.
  • Nancy Davis, CIO of Quadratic Capital, sees opportunity in tech outside of the U.S. "The Chinese companies are doing much better, and it seems like China is also easing rates. They've cut the reserve requirement for central banks, so they're kind of an outlier to the rest of the world," said Davis. "I like looking at Chinese tech. I think there's more asymmetry on the upside there versus some of the U.S. tech."

Bottom line: Tech weakness looks temporary, and the market will move back into high-growth stocks again. In the meantime, consider tech sector opportunities outside the U.S.

Vote to see results
Total Votes:

Not a Scientific Survey. Results may not total 100% due to rounding.


Trades to Watch

Trader Bios


Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

Read more