S&P 500 Is Surviving Big Tech’s Slide as ‘Other 493’ Catch Up
- Real estate and utilities are beating the Magnificent Seven
- Lower rates, economic growth gives cyclical stocks a lift
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The stock market has recovered most of the losses suffered in its summer selloff. While the S&P 500 Index has bounced back before, this time is unique because it isn’t being led by Big Tech — instead it’s everyone else’s turn.
Technology giants like Nvidia Corp. and Microsoft Corp. have led gains in the equities benchmark for much of the last two years, with investors attracted to their booming profits and exposure to artificial intelligence. But now traders are rotating into sectors like real estate, utilities and consumer staples amid fears of sputtering economic growth and with the Federal Reserve preparing to start cutting interest rates as soon Wednesday.