Jefferies cools on tech stocks because of higher rates

Share
Traders work on the floor of the New York Stock Exchange.
NYSE

(This story is for CNBC Pro subscribers only.)

A top Wall Street small cap analyst is advising clients to stay away from technology stocks as a more optimistic economic outlook should push rates higher.

Jefferies downgraded the small-cap technology sector to underweight from market weight on Monday. The firm cited higher interest rates and a steeper yield curve, which should boost more economically sensitive parts of the small-cap group.

More In Investing trends

CNBC ProThese stocks are expected to have the biggest earnings comebacks in 2021 as economy reopens
CNBC ProHere are 3 ETFs to play the incoming Biden agenda
CNBC ProBillionaire Howard Marks explains why he doesn't like gold as an investment