Investors Shift From Tech as QQQ Falls 1.1% Ahead of CPI Test
Updated
Updated · TheStreet · Jun 9
Investors Shift From Tech as QQQ Falls 1.1% Ahead of CPI Test
1 articles · Updated · TheStreet · Jun 9
Summary
Technology led Tuesday’s weakness, but the broader market showed rotation rather than panic: QQQ fell 1.1% and MAGS lost 1.3%, while 57% of stocks rose and the Russell 2000 gained 0.3%.
Money moved into retail, financials, homebuilders and biotech, with ETFs such as RTH, XLF, XHB and IBB outperforming as investors cut exposure to richly valued tech shares.
That shift reflected concern that Wednesday’s CPI could come in hot, further eroding already-thin hopes for a dovish Federal Reserve and pressuring rate-sensitive valuations.
A second near-term catalyst is Friday’s expected SpaceX IPO, which the report said could intensify rotation within technology even if CPI drives a broader market move.