Investors Rotate Out of AI Winners as Rate Cut Sparks Broader Market Confidence
Investors rotated out of expensive AI and growth stocks following the Fed’s latest rate cut Capital flowed into value and cyclical sectors such as small caps, financials and industrials Strategists view the shift as a positive signal for economic confidence, not a tech collapse Investors are pulling money from highflying artificial-intelligence stocks and reallocating it across a wider range of assets, a shift that signals growing confidence in the U.S. economic outlook, according to a MarketWatch analysis by Joseph Adinolfi. After the Federal Reserve delivered another interest-rate cut, investors appeared more willing to rotate into value-oriented and cyclical stocks that had…