Weaker-than-expected jobs data from Thursday has fueled optimism that the Federal Reserve will pause its interest rate hikes.
This shift in sentiment has revived the so-called “rotation trade” on Wall Street.
Investors are now moving capital away from high-growth tech stocks toward more cyclical sectors.
Banks, energy, and industrial companies have seen renewed buying interest in recent sessions.
The rotation reflects a belief that a slowing economy may allow the Fed to ease its tightening stance.
Traders are betting that falling rates could benefit undervalued sectors that have lagged this year.
The strategy marks a clear departure from the tech-heavy market leadership that dominated in 2023.
