Big Tech Stocks Losing Favor: Unveiling the Market's New Momentum Trade

The U.S. stock market has pushed higher this year despite angst over the Federal Reserve’s independence and heightened tensions around U.S. foreign policy. Investors are moving away from Big Tech, in an epic rotation that has left a popular exchange-traded fund that focuses on such stocks on track for its longest monthly losing streak since 2023. While Big Tech stocks have weighed on the S&P 500 index SPX this year, investors are rotating their money into other pockets of the market. That’s strengthening the market’s breadth, or the different kinds of stocks participating in the rally, and helping lift it to record peaks in 2026.