From Financial Modeling Prep: 2025-03-19 06:42:40

Wells Fargo analyst Christopher Harvey predicts the end of the sell-off in mega-cap tech stocks, citing intensified downturn from passive index fund rebalancing. Approximately $6.7 billion in sales of top tech stocks like Apple, Microsoft, NVIDIA, Amazon, Meta, and Google occurred due to rebalancing in the Russell R1000 Growth Index.

The rebalancing is set to conclude on Friday, potentially easing selling pressure and improving market sentiment. AI-related growth stocks, previously impacted by market correction, are now reaching more reasonable valuations. This adjustment signals positive prospects for AI-exposed growth stories amidst market uncertainty.

As the forced rebalancing nears completion, a rebound in mega-cap tech stocks is anticipated. Harvey’s analysis indicates the potential end of selling pressure, paving the way for recovery. Monitoring macroeconomic factors and AI-related stock performance will be crucial for investors eyeing opportunities in the evolving tech landscape.



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