Broader Tech Rally Hangs on Fed Getting Closer to Cutting Rates
- Nasdaq 100 beats its equal-weight version for seven weeks
- Investors have been piling into big names and AI winners
The Nasdaq MarketSite in New York.
Photographer: Yuki Iwamura/BloombergThis article is for subscribers only.
A broad equity rally isn’t spilling over into the technology sector, where gains are still concentrated in just a few artificial intelligence winners that have become defensive plays amid an uncertain macroeconomic backdrop.
An equal-weight version of the Nasdaq 100 Index, which makes no distinction between software giant Microsoft Corp. and drugmaker Moderna Inc., has trailed its cap-weighted peer for seven consecutive weeks through Friday’s close, the longest streak of underperformance since the first week of February 2020, data compiled by Bloomberg show. Before that, a lag this consistent happened only a handful of times ever — in 2017, 2012 and 2007.