WS #16581
Despite the heavy selling in mega-cap tech, broader market breadth remains solid with roughly 70% of stocks higher. Small caps (IWM) and equal-weight indices (RSP) are leading gains, while sectors like healthcare, real estate, and financials show strength. This rotation suggests investors are moving away from high-multiple growth stocks toward undervalued assets and defensive plays, supported by firming bond prices.
Market Rotation to Value and Small Caps
Despite the heavy selling in mega-cap tech, broader market breadth remains solid with roughly 70% of stocks higher. Small caps (IWM) and equal-weight indices (RSP) are leading gains, while sectors like healthcare, real estate, and financials show strength. This rotation suggests investors are moving away from high-multiple growth stocks toward undervalued assets and defensive plays, supported by firming bond prices.