For much of the past two years, U.S. markets have been dominated by a higher-for-longer rate regime. Growth stocks, particularly the tech-heavy Magnificent Seven, have thrived in this environment. Meanwhile, dividend-focused names, healthcare stocks, and smaller-cap companies have struggled to keep pace. Elevated borrowing costs and tighter liquidity have weighed on rate-sensitive corners of the market.
That dynamic may now be on the verge of shifting.
