Seeds of a Stock-Market Recovery Sown in Tech’s Catastrophe Week

  • Average stock has best back-to-back weekly gains since 2020
  • Hedge funds unwind risk, cautious stance seen advancing upside

A trader works on the floor of the New York Stock Exchange. 

Photographer: Michael Nagle/Bloomberg
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They’ve been safety stocks, a pie-in-the-sky growth trade, and a play on fortress profit margins that has been vacuuming up cash for a decade. Now megacap technology names have morphed into something else: market dogs.

All things considered, that’s not the worst news for bulls.