Tech stocks hit by a around of profit taking

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I
think
this
is
mostly
a
mechanical
move
as
low-rate
trades
get
re-worked.
The
Russell
2000
is
up
a
whopping
2.5%
in
its
best
day
of
the
year
while
the
Nasdaq
is
now
down
nearly
1%.

That
speaks
to
hedges
being
unwound.

Some
of
that
is
that
lower
inflation
will
lead
to
rate
cuts
and
yields
are
down
9-13
bps
across
the
curve.

I
also
worry
that
this
is
as
good
as
it
gets
for
tech.
The
AI
boom
has
led
to
a
massive
run
in
megacap
tech
and
those
stocks
also
act
as
safe
havens
and
insulation
against
high
rates
(because
of
their
low
debt
levels).

We
could
be
shifting
paradigms
here
towards
more
worries
about
growth
and
at
the
same
time
hitting
a
wall
on
AI
spending
and
hype.
Even
if
that’s
not
the
case,
you
can
see
the
temptation
to
take
some
profits
after
a
run
like
this
in
the
Nasdaq: