With rising interest rates spurring an abrupt end to the leadership of Big Tech, the largest technology companies are wielding less and less power over broader indexes, as former high-fliers like Meta Platforms Inc. and Amazon.com Inc. crash anew in the latest wave of selling. Reversing the extremes of the cheap-money years, the capitalization-weighted S&P 500 hit the lowest versus an equal-weighted version of the benchmark since 2019.
Another tech plunge, another shot in the arm for stock quants mounting a big comeback in Wall Street’s awful year.
As the Federal Reserve ramped up its hawkish policy guidance this week on still-raging inflation, the once-booming Faang megapcaps lost a further US$568 billion in market value, bringing the cohort’s total capitalization to the lowest since mid-2020.
