Big Tech stock rally is over but equity market will still rise: expert

The rally in Big Tech stocks has"run its course," but the broader US equity market will still extend gains toward record highs this year, according to the chairman of Sanders Morris Harris, a US investment firm that manages $4.9 billion for clients.

The veteran investor thinks the largest blue-chip tech companies have gotten so big that they can't grow much more, and that it would be"almost impossible" for their revenues to swell at the pace they have done for the past 10 years. "Hence upside potential after the partial recovery is medium grade at best. Smaller but established tech companies are where the almost unbounded growth opportunities exist," he told the publication.

"There is an increasing sense that corporate America can cope with higher interest rates more successfully than expected, and that is attracting more buyers of stocks," Ball told Fortune.

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