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Great Stock Rotation Has Legs, Wall Street Pros Say

  • Tech darlings stung by bond selloff in 2022’s first week
  • Hawkish Fed may jawbone real rates higher: Andrew Sheets
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S&P 500 Rally to Continue in 2022, Tallbacken's Purves Says

Thanks to the new-year bond selloff, Wall Street pros are doubling down on a big stock call for 2022: The leadership of high-growth tech darlings is no more.

As inflation-adjusted yields rise on conviction the Federal Reserve will tighten policy in earnest this year, Wells Fargo Securities and Morgan Stanley are telling clients to wager against high-flying technology firms that were among the biggest beneficiaries of the low-rate era -- in favor of cheaper stocks that gain from the pandemic recovery.