Trading the Market Downturn: The Committee's Next Move 6/9/26

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**Scott Wapner** (1:00)
I'm Scott Wapner and you're listening to CNBC's Halftime Report, the podcast, the most profitable hour of the trading day. We record this live weekdays at 12 Eastern. Listen in.
Carl, thank you very much. Welcome to the Halftime Report. I'm Scott Wapner at One Market in San Francisco, where the tech trade is front and center this hour. Can the space rebound from this on-going sell-off? Well, ask the Investment Committee, joining me for the hour today, Josh Brown, Joe Terranova, Malcolm Ethridge, and Jim Labanthal. We'll show you the markets here. We're pretty much the lows of the day. Tech trade is really leading us to the downside here. Nasdaq's off by near 600 points now, two and a third percent, but you do have some selling in other parts of the market. But as Mike Santoli was just talking a few moments ago, more stocks up than down at the New York Stock Exchange, that's notable. Josh, as we look at what this market is doing, I get that all eyes are on the tech trade, but as Mike said a few moments ago, this is what a rotation looks like. This is what a rotation feels like.
It's not always pretty.
And the S&P is being impacted more than anything else by the pullback in these tech names.

**Josh Brown** (2:20)
Yeah, so I think this is a larger problem for people who have these sort of one-dimensional portfolios where they think they're diversified because they own Dell, Sienna, Cisco, Corning and Microsoft. And really what they've done is they've doubled, tripled and quadrupled down on the AI capex theme. And then they say, well, wait a minute, one's a computer company, one's communications, one's a utility, blah, blah. No, it's a one-dimensional theme that you've been invested in. And by the way, it's the highest momentum area in the market. And that feels great when the tape is grinding higher at half a point every day, but that's not today. I think Friday was a really good wake up call. I think a lot of people took a look and said, all right, I'm up huge, but maybe I should have something else going on in my portfolio. Guys, do me a favor.
Bring up the Halo ETF, LOHA, Scott, it's green today.
It doesn't own any of that. Here are the top contributors in Halo. Ralph Lauren, Home Depot, Clorox, Masco, Lowe's, Colgate. These are all up, Coca-Cola Consolidated, Bottling, Cygnet Jewelers. Every one of these stocks is up 3% today, today, one day. Why? There's no fundamental, there's nothing specific about those companies. It's this recognition, what Santoli was saying just now, the torque of these rotations. Well, if you start out from a position of diversification, and you don't have an entire portfolio betting on AI CapEx, becoming more and more ludicrous into the future, today's not that bad of a day.
But you are being sort of tricked by what the S&P and the Nasdaq are doing, and thinking that's representative of a stock portfolio, and it's not necessarily for most investors.

**Scott Wapner** (4:19)
Joe, this is what, I don't know if you use the word violent or not, but I mean, this is what a rotation was going to look like. It wasn't going to be this little, oh, let's drain some of the gains that we've had in tech, and we'll just put it in other areas of the market. I mean, tech's getting ripped up pretty good.
Momentum's been downgraded at Barclays to neutral. That plays obviously right into your wheelhouse. And Jonathan Krinsky says today that tech is not out of the woods. Uses history as a guide and says, when the Nasdaq loses 4% or more on a Friday, there's a 90% chance that Friday's low is breached in the next five trading days. And we don't think this time is any different. Maybe the market is starting to bear that out a little bit, that what happened on Friday needed to be retested, that yesterday's bounce was just that, a bounce and nothing more.