A powerful rotation into healthcare is taking shape across global markets, with investors pouring money into sector ETFs at one of the fastest clips this year. What started as a cautious move toward defensive stability has quickly morphed into a broader enthusiasm for biotech, pharma and healthcare-services names – helped along by a blockbuster rally in clinical-trial stocks, explosive AI adoption across the industry and Eli Lilly And Co’s (NYSE:LLY) entry into the trillion-dollar club.
Rotation is coming directly at the expense of technology. Funds like Invesco QQQ Trust (NASDAQ:QQQ) are witnessing notable outflows despite their underlying stocks trading near highs. Last week, according to data aggregated by VettaFi, QQQ lost around $3 billion. Investors seem wary of stretching megacap valuations further, particularly with AI expectations inflating faster than earnings.
