Nasdaq Hits New High as Tech Stocks Surge Amid Sector Rotation

The US stock market has seen a significant shift in recent weeks, with tech stocks experiencing a resurgence and traditional value stocks continuing to decline. This sector rotation is not new, but rather a familiar pattern that has played out several times in history.

The Nasdaq-100 index has hit a new high, driven by the growing demand for AI infrastructure and algorithm commercialization. Companies like Meta Platforms and Micron Technology have seen significant gains, with their stocks rising due to increased investments in AI-related technologies.

In contrast, traditional financial giants such as JPMorgan and Wells Fargo & Co have faced a wave of selling, driven by factors such as policy aftershocks from the Federal Reserve's hawkish stance, yield curve flattening, and anxiety over AI-driven 'disintermediation' in finance.