Strategists led by Ben Snider told clients to focus on sectors that have lagged as the tech sector that drove the market wobbles
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Goldman Sachs $GS strategists, with Ben Snider heading the group, are advising clients to buy shares in lagging areas of the market while the technology group that propelled equities higher hits turbulence, according to MarketWatch.
The strategists laid out the advice in a note to clients. The recommendation covers 23 stocks, according to MarketWatch.
The Magnificent Seven (Alphabet $GOOGL, Apple $AAPL, Amazon $AMZN.com, Meta $META Platforms, Microsoft $MSFT, Nvidia $NVDA and Tesla $TSLA) together make up about one-third of the S&P 500 by weight. The group faced pressure over the cost of artificial intelligence spending earlier this year. Investor anxiety over AI infrastructure costs erased $2.3 trillion from the group's combined market value in June.
Microsoft stock lost 20% of its value during June, and Nvidia stock fell roughly 13%. Apple stock and Amazon stock each gave back around 8%.
Apple stock has since separated from the rest of the group. The company's lower capital spending relative to peers has made its stock a hedge against volatility, while Alphabet, Amazon, Meta and Microsoft have committed hundreds of billions of dollars to chip purchases and data center construction.
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