Recently, large-cap tech stocks have faltered, as investors pivot away from the artificial intelligence (AI) giants that have set the pace for the market’s rally over the past year. The rotation into small-cap stocks and cyclical sectors comes amid rising expectations for Fed rate cuts and an economic “soft landing,” and many analysts point to the increasing breadth as a sign of a healthy market.
With Big Tech stocks under particular selling pressure in recent weeks, the tech-heavy Nasdaq 100-Index ($IUXX) closed Tuesday’s session down more than 9% from its July highs - and individual heavyweights within the index have corrected by even more from their recent peaks.
