Tech sector recovery vital for AI bull market momentum
AI-fueled market gains hinge on tech stock resurgence, not defensive sector strength, analyst says.
(Photo via CNBC)
The current momentum of the artificial intelligence-driven bull market depends on a rebound in technology stocks, according to analysis from CNBC reporter Mike Santoli on Nov. 3, 2026.
While investors have recently shifted capital into defensive sectors, Santoli noted that the path to market growth does not rely on companies like Walmart, Berkshire Hathaway, and Eli Lilly. These three firms, which represent the only trillion-dollar market cap entities outside of the major technology group, added a combined $550 billion in market value over the past month. This defensive growth has served to partially offset recent losses recorded by Alphabet.
The market has seen an accelerated tactical rotation as investors manage risk by moving between defensive holdings and technology stocks, the latter of which have faced selling pressure. As of Monday, Nov. 2, 2026, the Nasdaq-100 closed at its 200-day moving average.
Santoli emphasized that the AI bull market almost surely needs tech stocks to recover to keep advancing, suggesting that the current rotation into defensive sectors is insufficient to sustain the broader market trend.