Big tech trade shudders just as stock pickers make a comeback

Wall Street’s sure-fire, money-minting trade of 2024 – going all-in on Big Tech – was upended this week, sparking stock volatility across the board and thrashing momentum-chasing investors along the way.

An earnings flop from Tesla Inc. and fears about Alphabet Inc. spending landed just as popular bets in bonds and commodities misfired, adding to the cross-asset disruptions. Yet for all noise, one trend is unmissable: Unloved fringes of the equity landscape – from small caps to banks – are suddenly on a tear and stock picking is back in vogue.