Tech Sell-Off Lifts Other Sectors in Market

Eight of 11 S&P 500 sectors gained Monday as technology stocks fell, with one strategist warning the Nasdaq could slip to 24,000.

Updated on Nov. 4, 2026 in Stock Markets

Tech Sell-Off Lifts Other Sectors in Market

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Consumer discretionary, staples, utilities and financials gained Monday while technology sold off, and eight of the 11 S&P 500 sectors finished higher. Kenny Polcari said the market is testing a reset as investors rotate away from tech names.

Why it matters

Reports suggest large asset managers may be reducing technology exposure, which has driven broad selling across tech stocks. The rotation shows investors shifting capital into other sectors even as major indexes remain up year-to-date.

The S&P 500 market capitalization fell 0.5% while the equal-weight index rose 0.7%, reflecting technology weakness against gains elsewhere. The Nasdaq could slip to 24,000, about 5% below current levels, though the source does not specify the basis for that projection.

The players

Kenny Polcari

Polcari is a market strategist who commented on the sector rotation and the possibility of a Nasdaq reset in an interview with Schwab Network.

Schwab Network

Schwab Network is the financial media channel operated by Charles Schwab that broadcast the interview in which Polcari discussed market conditions.

The details

Polcari made the comments in a Tuesday interview with Schwab Network. Some individual technology stocks are more than 20% down from their highs, even as Apple reported quarterly revenue above $114 billion but missed margin expectations by one percentage point.

Monday: Eight of 11 S&P 500 sectors gained as technology sold off.
Tuesday: Polcari discussed the sector rotation in a Schwab Network interview.
Last month: Apple stock reached new highs while technology was under pressure.

Market Dynamics

The SPDR S&P 500 ETF is up more than 11% year-to-date but down about 1% quarter-to-date, while the Invesco QQQ Trust is up nearly 12% year-to-date but down more than 7% quarter-to-date. This divergence signals that the year's technology-led gains are being challenged by a recent shift toward other sectors.

Investors with exposure to technology-heavy funds such as QQQ may see continued volatility if the sector rotation persists. Those holding broad index funds like SPY should note the recent quarter-to-date decline even though year-to-date returns remain positive.