Jefferies Sees Crowded Trade in Big Tech as Fed Nears Rate Cuts

The Federal Reserve could be poised to trigger a stock-market regime change that sees smaller companies perform better than megacap tech, according to a strategist at Jefferies.

Data going back to 1990 show that the S&P 500 Equal Weighted Index outperformed the traditional market-cap weighted version of the benchmark when the Fed is reducing interest rates, according to Andrew Greenebaum, senior vice president of equity research product management at Jefferies.