Stock rotation | News that US inflation cooled broadly in June — to the slowest pace since 2021 — sent Treasury yields plunging on Thursday as bets mounted on the prospect for Federal Reserve interest rate cuts this year. In the equity market, that helped drive a rotation out of the tech megacaps that have powered the bull market in stocks. Optimism over lower rates sparked a shift into riskier corners of the market as money exited the safety trade of big tech. Investors are growing increasingly concerned that tech megacaps are spending too much on artificial intelligence, according to Goldman Sachs.
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