Wall Street Rotates Out of Tech as Growth Optimism Builds

Wall Street extended its rotation out of technology stocks and into sectors more exposed to improving growth prospects, even as strong US services data pointed to firmer economic momentum. Software and chip stocks led declines, with investors wary that advances in artificial intelligence could pressure business models, while a disappointing outlook from Advanced Micro Devices weighed on semiconductors.

Despite most stocks rising, the S&P 500 slipped 0.2% and the Nasdaq 100 fell 1%, breaking below its 100-day moving average. The iShares Expanded Tech-Software ETF dropped nearly 4%. Treasury yields were little changed, with the 10-year holding near 4.27%, and the dollar edged higher.

Gold climbed to around $5,000, reflecting continued demand for hedges. Investors now turn to upcoming big-tech earnings, including Alphabet, for clearer signals on whether the selloff reflects stretched valuations or a broader rebalancing tied to improving economic fundamentals.

UCapital Media