Tech stocks Broadcom, Meta Platforms, and Intel were down due to market rotation into small caps.

From NASDAQ: 2024-07-11 14:05:38

Shares of Broadcom, Meta Platforms, and Intel were down, with Broadcom receiving an analyst upgrade. A soft inflation report caused a market rotation into small-cap stocks, pushing tech stocks lower. Investors may be reassured that inflation is heading back to 2%. Large investors are selling tech winners and rotating into small caps.

A recent study by JPMorgan Chase analysts suggests valuation differences between high-quality large-cap and small-cap stocks are at record levels. After the dot-com bubble, small caps outperformed for the next decade. Despite today’s market move, it may be a good time to consider small-cap stocks. Tech stock declines are not related to bad news about the companies’ businesses.



Read more at NASDAQ: Why AI Stocks Broadcom, Meta Platforms, and Intel Were Down Today