Last week, the United States (US) stock market saw an increase in demand for other stocks, not just focused on certain sectors which provided relief to investors worried about heavy reliance on technology stocks.
While tech giants such as Nvidia and Apple have contributed significantly to the market's gains, there is now increased interest in value stocks and smaller companies.
This shift suggests that investors are looking to diversify outside of the dominant technology sector.
Expectations for the US Federal Reserve's expected rate cut in September are the main catalyst behind this widening trend.
Lower interest rates are expected to favor value stocks.
The market expansion is clear, as 61% of S&P 500 stocks outperformed the index last month, signaling growing confidence in a more balanced market.
Key economic indicators, especially the jobs report, are highly anticipated as they can influence market direction and confirm the Fed's stance on interest rates.
Despite diversification into other sectors, technology stocks remain the main growth drivers due to strong earnings potential and themes such as artificial intelligence.
The recent performance of the US stock market has shown a positive shift, with investors broadening their focus beyond the technology sector alone.
