The tech sector's tentative rebound is being led by Apple, which has provided reassuring guidance despite challenges in iPhone sales and the Chinese market. This has helped lift the S&P 500, although broader market concerns persist. Nvidia's upcoming meeting with former President Trump adds uncertainty, and the Nasdaq 100 remains down for the week due to jitters surrounding DeepSeek. Investors are increasingly turning to European equities, with the Stoxx 600 outperforming the S&P 500, and value stocks are gaining favor as a safer alternative to the overvalued big tech stocks. Bank of America's Michael Hartnett has labeled the big tech stocks as the "Lagnificent 7," suggesting potential underperformance this year, which is reflected in the info tech sector's lag behind the S&P 500.
The SPDR S&P 500 ETF (SPY) rose 0.73% to $609.47 at 10:40 AM on Friday, January 31.