Investors are dumping stock-market winners and buying almost everything else. Why that’s a good sign.
Summarize this article with:
Investors are dumping stock-market winners and buying almost everything else. Why that’s a good sign.After a brief reprieve, stocks linked to artificial-intelligence trade hit the skids this week, as investors once again shifted their money into anything with a whiff of value.Tired of paying up for trendy AI stocks trading at lofty valuations relative to their expected earnings, investors went bargain hunting after the Federal Reserve delivered another interest-rate cut on Wednesday. The move convinced some that the U.S. could see a return to a “Goldilocks” scenario for the economy — one where the pace of growth remains solid, but inflation stays more subdued.About the AuthorJoseph Adinolfi is a markets reporter at MarketWatch. Copyright © 2025 MarketWatch, Inc. All rights reserved.