Big Tech Stocks Quickly Falling Out of Favor, Market's New Momentum Trade

The U.S. stock market has pushed higher this year despite angst over the Federal Reserve's independence and heightened tensions around U.S. foreign policy. However, Big Tech stocks are quickly falling out of favor, and investors are looking for new momentum trades.

Market Trends

The market's new momentum trade is shifting away from Big Tech stocks and towards more traditional sectors such as finance, healthcare, and consumer staples. This shift is driven by a combination of factors, including the Federal Reserve's interest rate hikes and the ongoing trade tensions between the U.S. and China.

Big Tech Stocks

Big Tech stocks, including companies such as Amazon, Google, and Facebook, have been under pressure in recent weeks due to concerns over their valuations and growth prospects. The stocks have fallen out of favor with investors, who are now looking for more stable and defensive sectors.

Market's New Momentum Trade

The market's new momentum trade is focused on sectors that are less exposed to the trade tensions and interest rate hikes. These sectors include finance, healthcare, and consumer staples, which are seen as more stable and defensive. Investors are also looking at companies with strong cash flows and dividend yields, which are seen as a safe haven in times of market volatility.

Conclusion

The market's new momentum trade is shifting away from Big Tech stocks and towards more traditional sectors. Investors are looking for more stable and defensive sectors, which are less exposed to the trade tensions and interest rate hikes. The market's new momentum trade is focused on sectors such as finance, healthcare, and consumer staples, which are seen as more stable and defensive.

Sources

[1] Big Tech stocks are quickly falling out of favor. Here’s the market’s new momentum trade.