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Drubbing in Tech Stocks Marks Biggest Rotation to Value Since ’95

  • Cyclical, value shares surge amid expectations for rate hikes
  • Shift broadens market breadth and may help active managers

After five years of waiting for technology shares’ grip on the market to loosen, value investors are getting their hopes up at the start of 2022. 

Software and internet stocks sold off Tuesday, driving the Russell 1000 Growth Index down 1.1%. Meanwhile, energy and financial shares surged, leading gains among those trading at lower multiples based on profits or book value.