Do not rush into the recession trade – Pro at Wall Street See the opportunity in technology and banks

Concerns about estimates, tariffs and slowing economic growth have caused an ugly week for shares.

Sales in the magnificent seven trade pushed the composite Nasdaq (^ixic) into a correction territory. The index closed the week down by 3.6%, while the S&P 500 (^GSPC) registers its worst weekly performance since September.

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Nearby: March 7 at 4:43:27 pm Est

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But before investors did it, the strategists told me that it was not time to panic and accumulate in the recession trade. Rather, they see the recent sale as an opportunity to buy as long as investors are ready to look at uncertainty from Washington, County Colombia

“We get a correction once every 12 months and this time it is encouraged by the tariffs,” Nancy Tengler of Tengler Investments told me. “If they are short -lived, it’s just an opportunity to buy shares in the long run.”

According to Tengler, technology and financial resources are among the two deals that stand out.

“Protective trade is just that, trade,” she noted. “We like financial … and the cases of AI use. This is an industrial revolution that we haven’t seen for 100 years … Use the weakness to add to your possessions.”

The evaluation adjustments in combination with strong profits are also made by the group more captivating. The losses of market restrictions on NVIDIA (NVDA) records reached $ 1 trillion in January during Friday’s trade. Recently, the Giant Chips announced the fourth quarter revenue, which includes 82% during the year’s profit leap per share.

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Nearby: March 7 from 4:01 pm Est

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“Tariffs add uncertainty, but that doesn’t change the search cycle,” Dan Ives told me about Wedbush about the morning short short of Yahoo Finance. “This will not put an end to the Tech Bull market; This is scare, but I see more opportunities than a reason to head to the hills. “

IVS repeated its position that MAG Seven Stocks Nvidia, Microsoft (MSFT), Alphabet (Googl, Goog), Amazon (AMZN) and Tesla (Tsla) remain companies to have, together with Palantir (Pltr) (Pltr) enable the main picture of the search. “

Another sector with a smaller score that attracts attention this week is the financial resources. The KBW NASDAQ (^BKX) bank index deleted its rally after the election, falling nearly 13% of its recent peak, as worries about the weakening economy and slow deals were weighed on the sector.

However, strategists claim that beyond the title, key catalysts for the sector remain intact: deregulation, attractive estimates and the prospect of lower interest rates.

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Near: March 7 at 5:15:59 pm Est

Keith Lerner of Truist, who recently lowered the shares from attractive to neutral, maintains his “attractive” prospects for financial resources (XLF). In a note to customers, Lerner wrote the group “He has to take advantage of growth, deregulation and pickup policies in mergers and acquisitions.”

Stuart Kaiser from Citigroup sounded cautiously optimistic views and emphasized the importance of remaining electoral. He told me to the catalysts to exert patience and said he saw a high quality of high quality in the financial and technology sector.

But unlike others, Kaiser still does not buy the seven MAG names, the argument of positioning in these stocks remains crowded.

“Be in big, safe, high quality stocks … hedging and be patient,” Kaiser advised. “We still like banks … and Nasdaq is equal to the weighted index. It gives you exposure to technological space with large caps, while reducing the risk of concentration in MAG seven. “

NASDAQ 100 Equal Weighed Index (^NDXE) closed the week down by 3.3%.

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Sean Smith is an anchor in Yahoo Finance. Follow Smith on x @SeanansmithS Tips for transactions, mergers, activation situations or anything else? Send an email to Seanasmith@yahoooint.com.

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