STOCKS | LFG+Zest CIO Alberto Conca: U.S. Tech Under Pressure, European Stocks Hold Up as Market Breadth Widens

According to Jin10, LFG+Zest Chief Investment Officer Alberto Conca said the breadth of the market rally is widening and defensive European equities may continue to outperform. Conca made this assessment before a change in Nvidia’s leadership. Information technology accounts for more than 35% of the MSCI USA Investable Market Index, compared with 8.8% of the corresponding European index. European indexes have greater exposure to financials, health care and energy, while earnings at some companies and better-than-expected economic data have also provided a buffer. That protection is relative. Investors say Europe’s lower technology weighting can cushion volatility in a single sector, but stocks in Europe and other regions could also be dragged down if a selloff spreads from U.S. technology shares to the broader Wall Street market.