Big Tech is SO back. Again.

Ever since the stock market bottomed out on April 7, we’ve seen most (though not ALL) of the biggest technology stocks rocket higher. All but two are outperforming smaller-capitalization stocks, as represented by the iShares Russell 2000 ETF (IWM), as well as the SPDR S&P 500 ETF Trust (SPY) -- as you can see in this MoneyShow Chart of the Day.

“Big Tech,” SPY, IWM
(% Change Since April Low)

Data by YCharts

Nvidia Corp. (NVDA) is the Big Tech name with the most post-"Liberation Day" juice – up 58%. Tesla Inc. (TSLA) isn’t far behind, with a 40.4% rally. Next are Microsoft Corp. (MSFT) and Meta Platforms Inc. (META), both nipping at Tesla’s heels with gains of 37.8% and 37.3%. Only Apple Inc. (AAPL) and Alphabet Inc. (GOOGL) are notably lagging (+11.2% and +16.4%, respectively).

What’s behind the resumption of the Big Tech trade – a trade that has periodically popped back up over the past year or two? A few things...

First, investors are boosting bets on earlier Federal Reserve rate cuts. Lower rates help boost growth-stock multiples.

Second, concerns about tariff and trade policy have eased. President Trump has dialed backed some of his most punitive tariffs – and signaled a willingness to keep negotiating with trade partners. That could prevent some of the worst-case tech supply chain scenarios from playing out.

Third, FOMO is back in play. Investors got too bearish during the declines, didn't get on board early enough in the subsequent rally, and they’re now dog-piling into old favorites to play catch up.

Add it all up and you have a tech sector that is leading again – and driving the averages to new highs. From where I sit, that’s bullish…and underscores why my “Be (Selectively) Bold” approach (still) looks like the right one here.

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