In this week’s The Glass Half Full, Ryan Detrick, Chief Market Strategist at Carson Group, and Sonu Varghese, Chief Macro Strategist at Carson Group, tackle the question on everyone’s mind: Tech stocks are crashing, now what?
While the S&P 500 sits just 2-3% off its June 2 all-time high, Ryan and Sonu unpack the churn happening underneath the surface. The Nasdaq is down roughly 10% from its high, South Korea’s chip-heavy Kospi index has tumbled 40% since June 22, and US chip stocks peaked that same day. Meanwhile, financials, healthcare, and industrials are all up double digits since the June 2 high, and bank stocks are hitting 52-week and all-time highs. Ryan and Sonu walk through the “three buckets” of tech pain (software, hyperscalers, and now chipmakers), dig into the massive scale of hyperscaler data center spending led by Alphabet’s jump toward $200 billion in 2026 capex, and highlight a broadening earnings season where names like Coca-Cola and 3M are posting standout growth alongside the AI trade. They close with a reminder to stay diversified as this bull market works through a stretched-rubber-band pullback in tech.
Key Takeaways
- Outside of AI-related names, the S&P 500 is up 6-8% since the June 2 high, with financials, healthcare, and industrials all posting double-digit gains and bank stocks hitting 52-week and all-time highs.
- We see the tech pullback as three sequential waves of pain: software first, then hyperscalers, and now semiconductor and memory chip stocks, as the market questions whether massive AI spending will continue and pay off.
- Hyperscaler capex keeps climbing: Alphabet raised its 2026 data center spending guidance from $115 billion to as much as $205 billion in just two quarters, with the industry on pace for $400-500 billion in spending, equivalent to roughly 1.5% of GDP from one company alone.
- In our opinion, earnings season supports the bull case beyond just AI, with second-quarter earnings growth tracking toward the high-30s to low-40s percent year-over-year and strong results from non-tech names like Coca-Cola and 3M pointing to a solid underlying economy.
Jump to:
0:00 — Tech Selloff Versus Index Highs
1:12 — Under The Hood Sector Rotation
2:55 — Bank Strength and Market Activity
3:48 — Three Buckets of Tech Pain
4:34 — Data Center Spending and the Big Bet
5:55 — Earnings Surge Beyond Big Tech
7:14 — Inflationary Growth and Staying Diversified
Connect with Ryan:
- LinkedIn: Ryan Detrick
- X: @ryandetrick
Connect with Sonu:
- LinkedIn: Sonu Varghese
- X: @sonusvarghese
The views stated in this podcast are not necessarily the opinion of Cetera Wealth Services, LLC, or CWM, LLC. and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.
Ryan Detrick and Sonu Varghese are non-registered associates of Cetera Wealth Services LLC.
A diversified portfolio does not assure a profit or protect against loss in a declining market.
Please note: Cetera Wealth Services, LLC is not registered to offer direct investments into commodities or futures. Instead, we provide access to this asset class via mutual funds, exchange-traded funds (ETFs) and the stocks of associated companies. Investments in commodities may be affected by the overall market movements, changes in interest rates and other factors such as weather, disease, embargoes and international economic and political developments. Commodities are volatile investments and should form only a small part of a diversified portfolio. An investment in commodities may not be suitable for all investors.
The return and principal value of bonds fluctuate with changes in market conditions. If bonds are not held to maturity, they may be worth more or less than their original value.
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