Value Is Back in Vogue, But Don’t Write Tech Off Yet
This is still very much a rotation into companies that stand to benefit from a resilient economy, not a selloff.
Walmart topped $1 trillion in market cap. Rotation out of tech and confidence in the economy are helping consumer stocks.
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Investors are assessing tech companies with more nuance than ever — and that’s creating a market reaction decidedly lacking in nuance. Last week’s divergent responses to Meta Platforms Inc. and Microsoft Corp.'s earnings showed that concern has moved beyond productivity to an attempt to identify whose profits will be hurt by artificial intelligence. Hence this week’s titanic market rotation.