The great value rotation in the stock market could be over already as investors embrace tech again

SectorFinancial Markets
CountryMiddle east

Is the great value rotation over? The S&P 500 is at an historic high, but investors who earlier this year overweighted their portfolios into reopening stocks like and banks, and away from tech and other growth stocks, appear to be rethinking that strategy. Many of the companies associated with the “reopening” trade topped out in April or early May: Now, a final leg of the so-called “value” trade is also cracking this week: banks. Investors instead have begun rotating back into old-school growth stocks. Thursday saw new highs in , , and but perhaps more importantly formerly deeply out of favor speculative growth stocks, many of them associated with Cathie Wood’s ARK funds, have begun rebounding: The changing market narrative What’s going on? The market narrative is changing.

The narrative in the first quarter was that the reopening would be very strong, bond yields would move up, and inflation may be an issue later in the year. This was more...