Investors shift focus to cheaper, smaller companies amid market volatility. Dow hits record high while software stocks lose $1 trillion. Tim Murray of T. Rowe Price notes aggressive buying of different stocks. S&P 500 up 1.78%, Nasdaq 100 up nearly 2%, Russell 2000 surges 3.5%. Amazon shares plunge due to $200 billion AI capital spending concerns.

Investors bet on industrial, healthcare, and smallcap companies as market rally broadens. Simeon Hyman sees benefits for dividend growth, equal-weighted indexes, and smaller companies. Risk assessment shifts from tech stocks and speculative assets like bitcoin. Jim Carroll notes intraday volatility as investors seek shelter in uncertain market.

Traders cautious despite Friday’s stock market gains, doubts persist over AI returns. Thierry Wizman questions hyperscalers’ profit generation from new capital spending. Defensive stocks show strength amid speculative asset unwind. Market divided between traditional favorites and new stock picks for returns.

Market moves towards energy, materials, staples, and industrials as investors seek new opportunities. Double-digit gains in economically sensitive sectors contrast with S&P 500’s 1.3% rise. Scott Chronert notes unexpected market broadening amid turbulent times. Market direction surprises investors looking for diversification.

Read more at Yahoo Finance: Analysis-Investors chase cheaper, smaller companies as risk aversion hits tech sector