State Street remains bullish on AI trade despite Nasdaq’s worst week since April. Chief business officer Anna Paglia believes momentum stocks will continue due to investor reluctance to move away from growth story. She predicts cooling off in early 2026 with focus on diversification. State Street manages ETFs with tech exposure, including SPDR NYSE Technology ETF gaining 38% this year.

Paglia sees a rotation starting in the market, pointing to renewed interest in health care stocks. Health Care Select Sector SPDR Fund, out of favor most of the year, saw a return to favor in October. It is up 5% since October 1 and was the second-best performing S&P 500 group this week.

Read more at CNBC: AI, Big Tech bull case despite Nasdaq’s worst week since April