Tech stocks could find support ahead, UBS says

The tech sector may soon find some support, according to UBS.

Mark Haefele, investment chief at UBS Global Wealth Management, anticipates that the recent market volatility could continue as investors continue to dump tech stocks for other interest rate sensitive assets. The Nasdaq Composite is the lone major index headed for a losing month.

However, he added the recent pullback could soon result in an attractive entry point for the sector. Over the past decade in markets history, there has been at least one 10% correction in global tech every year, and bounce back in the six months afterward. The one notable exception is during the 2017 bull market.

“We think the tech sector should find support in the coming weeks and resume its leadership,” Haefele wrote. “In fact, the recent pullback creates a reentry opportunity, in our view, especially for those companies with strong earnings growth visibility.”