Small caps, energy, and banks feels the love as Wall Street goes cold on Big Tech

The post Small caps, energy, and banks feels the love as Wall Street goes cold on Big Tech appeared on BitcoinEthereumNews.com.

Wall Street is pulling its money out of Big Tech and throwing it at everything it ignored for the last year: banks, utilities, energy stocks, and small-caps. This is happening now, not next quarter, and it’s clear the traders doing it are the same ones who just months ago were falling over themselves to get a bit of the Nvidia and Microsoft apples. But things changed. That selloff earlier this year, triggered by the White House’s sudden tariff threats, sent megacap tech crashing. Nvidia, Microsoft, Broadcom—all got hammered. But just as fast, they rebounded when the fears eased. By June 27, the S&P 500 and Nasdaq had both hit fresh all-time highs. But the rally wasn’t just tech. Financials, utilities, defense contractors, industrials; everyone’s eating now. Investors ditch mega-cap tech for broader bets The number of stocks in the S&P 500 closing above their 50-day moving average has surged to levels not seen since fall 2016, right before Trump got elected and markets exploded into an end-of-year rally. Even more telling, a separate metric tracking the number of stocks going up versus those going down hit a new high last Friday. Adam Turnquist, who runs technical strategy over at LPL Financial, said, “We’ve seen this before: big tech leads and the market follows. It seems like we are dusting off that playbook.” This time, though, Wall Street isn’t waiting for tech to lead. It’s moving on its own, without Nvidia dragging everything else with it. Tom Essaye from Sevens Report said the reason this is happening is simple: FOMO. “As long as things can stay stable, then this market is not exhausted by any stretch of the imagination.” Tom called this the “FOMO trade”—the fear of missing out that’s pushing investors into anything that isn’t priced like Tesla. Jamie Cox,…