Tech sector pulls back, rotates into old-economy and banking stocks as SET consolidates

US technology stocks have retreated, with semiconductor names entering correction territory down 10% from recent highs, as capital rotates toward value and old-economy names. The S&P 500 rose 0.28% to 7,713, the Dow gained 1.02% to 52,495.88 (boosted by 3M earnings beat), and the Nasdaq fell 0.02%. Meanwhile, Thailand's SET closed at 1,556.09 (+0.07% to 1.15 baht) on 68.73 billion baht turnover, recovering afternoon losses as traders rotated into banks on 3Q earnings hopes.

Money rotation from high-cost technology into asset classes with visible cash flow (banks, value stocks) reflects rising sensitivity to capital costs. Nvidia down 9% since early October peak, Micron down 25% from June highs. Foreign net inflows to SET totaled only 139.39 million baht while institutions sold a net 2.26 billion baht, signaling selective positioning ahead of Q3 earnings reports. The shift favors dividend-paying and capital-efficient sectors.

This rotation echoes the fed-2022 pattern when rising US rates pushed capital away from unprofitable high-growth names. The SET's afternoon recovery on banking interest mirrors the 2022 dynamic when financial stocks became refuge as cost of capital climbed. Q3 earnings season—about 70 S&P 500 names report this week including Tesla and Meta—will test whether rotation into banks is earnings-driven or sentiment-driven. The 27–28 October Fed meeting looms as the next catalyst for rate expectations and fund flows. Watch for SET bank stock performance through earnings and any shift in foreign institutional flows.