Shares of major technology companies are up after the sell-off woes, pushing market indices (^DJI, ^IXIC, ^GSPC) higher in a slow recovery. In a note, Venu Krishna, head of US equity strategy at Barclays, wrote that technology leaders are currently “on the penalty bench.”

Krishna joins the Catalyst team in the studio to talk about refocusing on AI monetization as technology stocks increasingly trade higher than their earnings.

“If you look at Meta (META), they’ve posted very good numbers for digital ads. If you look at Amazon (AMZN), they’ve posted very good numbers for their AWS side. And if you look at individual names, they’re checking the box,” Krishna tells Yahoo Finance. “But as the focus shifts to monetizing AI, you don’t want to pay very high multiples from here on out and you want to see monetization actually translate into earnings. And that’s clearly a secular trend…”

Krishna then gives his year-end forecast for the S&P 500 (^GSPC) and shares how he thinks the rest of the market (^DJI, ^IXIC) will react to third-quarter earnings forecasts.

Click here to watch the full episode of Catalysts for more expert insights and information on current market events.

This article was written by Luke Carberry Mogan.