Wall Street traders shift from tech megacaps to smaller firms on anticipation of Fed rate cut.

From Yahoo Finance: 2024-07-11 14:32:16

Wall Street traders drove bond yields down in anticipation of a Fed rate cut, leading to a rotation out of tech megacaps. Optimism over lower rates sparked a shift into riskier corners of the market, with the Russell 2000 outperforming the Nasdaq 100. While the S&P 500 fell, over 400 of its shares were up, and the index broadened as smaller firms beat tech giants. The dollar and yields dropped, hinting at a potential rate cut in September. Inflation cooling in June suggests a likely rate cut, though concerns are growing over US tech megacaps’ spending on AI.



Read more at Yahoo Finance: Stock Rotation Hits Megacaps on Bets Fed Will Cut: Markets Wrap