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Off the wires: Investors bet on shrinking pool of tech stocks as rally narrows
Off the wires: Investors bet on shrinking pool of tech stocks as rally narrows

Year-to-date the American S&P 500 index has rallied by over 7.5%. However, with a large proportion of these gains driven by just seven technology names, just how sustainable this trend has become is a hot topic among investors. This effect has been exacerbated in recent weeks as the 1Q23 earnings season results proved more fruitful for tech companies relative to other US sectors.

Weekly fund flows highlights – 15th May 2023
Weekly fund flows highlights – 15th May 2023

Following interest rate increases from both the US Federal Reserve and the European Central Bank, disparity has taken over investors. Our Head of Global Customer Solutions, Steve Muzzlewhite, uses our fund flows and asset allocations data to analyze the latest sector rotation and portfolio management strategies, and how these are impacting global markets.

Fed following data, investors running from it
Fed following data, investors running from it

The third month of 2023 started with investors pulling another $5 billion out of EPFR-tracked US Equity Funds, extending that group’s longest outflow streak since 2Q20, as stronger-than-expected consumer spending and a resilient labor market undermined the case for an early end to the current US rate hiking cycle.