In recent weeks, there has been a notable shift in the stock market as investors have been selling high-flying Big Tech shares in favor of smaller stocks that had been impacted by the Federal Reserve's interest rate hikes. This change in investment strategy followed a series of reports indicating cooling inflation, which has raised optimism among traders for a potential rate cut by the Federal Reserve in September.
Currently, there is a widespread belief on Wall Street that a September rate cut is highly likely. However, concerns have arisen due to signs of a weakening labor market, causing a significant downturn in the stock market. On Monday, all 11 sectors of the S&P 500 experienced declines, reflecting the overall negative sentiment among investors.
