Big Tech Tumbles Most Since 2022 as Rate Bets Spur Rotation
- Rate cut bets spark rotation out of Big Tech and into laggards
- Magnificent 7 index tumbled to worst day in more than a year
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The S&P 500’s longest winning streak since November was stopped Thursday by the same cohort that’s powered the index’s yearlong rally — megacap tech.
Investors bailed out of the so-called Magnificent 7 stocks — Apple Inc., Microsoft Corp., Nvidia Corp., Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Tesla Inc. — by the most in over a year as inflation data sparked bets the Federal Reserve will cut interest rates as soon as September. The rotation out of this year’s winners pushed the iShares MSCI USA Momentum Factor ETF to its worst day since May.