Stocks

Wall Street Review: Investor Rotation Triggers Tech Stock Sell-Off

Investors moved to rate-sensitive stocks after lackluster tech earnings raised AI return concerns and the Fed cut rates for the third time this year.
Wall Street Review: Investor Rotation Triggers Tech Stock Sell-Off
A trader works on the floor of the New York Stock Exchange on Dec. 11, 2025. Spencer Platt/Getty Images
Panos Mourdoukoutas
|Updated:
0:00

Wall Street ended the week with a split market, as investors rotated out of prominent technology stocks and into sectors more sensitive to interest rates.

Lower short-term interest rates boosted small caps, industrials, materials, and financials, while lackluster tech earnings raised concerns about returns on artificial intelligence (AI) investments. The shift resulted in mixed weekly performance among major indexes.

Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”