The most popular trade of the past three years, driven by large tech stocks, is hitting a speed bump as momentum in the AI trade slows. Palantir, a key player, fell almost 20% from its all-time high in a six-day losing streak that ended Thursday, though it’s still up over 375% in the past year.

The debate now centers on whether this dip is a buying opportunity in the AI bull market or a sign of the end of large-cap stock dominance. Market action over the past week has seen the Russell 2000 outperform the S&P 500, with healthcare and materials leading while tech lags.

Small caps have seen fits and starts in the past two years but haven’t fully rotated into leadership. The big question now is whether the current rotation is real. Bank of America’s Savita Subramanian believes cap-weighted dominance may continue, but a rate cut could signal the run is ending.

On the other hand, Truist’s Keith Lerner sees further dips in Big Tech stocks as buyable opportunities, with strong profit trends supporting valuations. Nvidia, a leader in the AI bull market, is set to report quarterly results, adding to the ongoing market debate on tech stocks’ future performance and market trends.

Read more at Yahoo Finance: Investors’ biggest conundrum right now