“This is all about the bench of the stock market finally stepping up,” said Todd Sohn, managing director of ETF and technical strategy at Strategas Securities. “While all of the best players from Nvidia to Microsoft pause their rally, the rest of the team is holding up their end of the bargain, with the most neglected groups catching a bid.”
Corners of the stock market outside of Big Tech are barreling higher as traders grow more confident about interest-rate cuts in the near future — fueling hopes that another leg of the bull run could be in the offing.
A version of the S&P 500 that strips out market-cap bias just posted the best two-week stretch relative to the S&P 500 since November 2020. This is a notable shift for the equal-weighted index that’s trailed the benchmark gauge for months, and it comes as optimism over eventual monetary easing is pushing investors away from the perceived safety of Big Tech.
