Analyst: U.S. tech stocks under pressure, European stocks relatively resilient

BlockBeats news, November 14 — Alberto Conca, Chief Investment Officer at Swiss wealth management firm LFG+Zest, stated that the breadth of the market rally is expanding, and European equities, which have a more defensive allocation, may continue to outperform.

Conca made this call before the leadership change at Nvidia. The information technology sector accounts for over 35% of the MSCI US Investable Market Index, but only 8.8% of the corresponding European index. The European index has broader exposure to financials, healthcare, and energy sectors, with some corporate earnings and better-than-expected economic data also providing a buffer.

This protection is relative. Investors note that Europe's lower tech weighting can buffer volatility from a single sector; if the selloff spreads from US tech stocks to the entire Wall Street market, equities in Europe and other regions could also be dragged down. (Jinshi)