Great Stock Rotation Hinges on Powell Signaling Rate Cuts Soon
- Nearly $6B flowed into non-tech US ETFs since CPI print: BI
- Investors now look to Fed chair’s remarks Wednesday for clues
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The continuing broadening of this year’s powerful stock market rally hangs on what the Federal Reserve does and says about interest rates after its two-day meeting wraps up on Wednesday.
Since the July 11 consumer price index print showed signs of cooling inflation, traders have stepped up their rotation out of Big Technology shares and into everything from small-capitalization stocks to value plays. Meanwhile, investors have poured nearly $6 billion into non-tech sector US exchange-traded funds, compared with just $1.4 billion that has flowed into tech ETFs, Bloomberg Intelligence data show.