Learn More about Lumida ETF
Powered by LumidaWealth.com
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
No Result
View All Result
  • Lumida Wealth
  • Lumida Ledger
  • LUMIDA ETF
  • About Us
Home Themes AI

Is Big Tech Hiding the Real Market Risks? Uncover the Truth

by Team Lumida
June 4, 2024
in AI, Markets
Reading Time: 3 mins read
A A
0
Big tech logo
Share on TelegramShare on TwitterShare on FacebookShare on LinkedinShare on Whatsapp

Key Takeaways

  1. Big Tech stocks are less affected by rising interest rates, skewing market perceptions.
  2. Smaller stocks suffer more from high rates, causing a significant market divide.
  3. AI excitement drives Big Tech, but smaller companies present potential bargains.

What Happened?

This year, Big Tech stocks like Nvidia, Microsoft, Apple, and Alphabet have surged, driven by excitement about artificial intelligence. The S&P 500, heavily weighted by these giants, is up over 10%, while the equal-weighted S&P 500 has risen less than 5%.

Smaller stocks, reflected in the Russell 2000, barely gained 1.6%. This disparity highlights how Big Tech’s massive cash reserves and strategic refinancing have insulated them from rising interest rates, unlike their smaller counterparts.

Why It Matters?

Big Tech’s dominance masks underlying market fears about the Federal Reserve maintaining higher interest rates. Smaller companies are more sensitive to bond yields, struggling without Big Tech’s financial cushions.

This creates a misleading picture for macro investors who rely on the S&P 500 as an economic barometer. The current valuation disparity is stark: the median stock in the S&P 500 trades at 18 times forward earnings, compared to over 21 times for the tech-heavy index.

What’s Next?

As the Fed hints at prolonged high rates, pressure will mount on the economy’s weaker segments. Economic data has consistently missed forecasts, exacerbating concerns. If rate cuts materialize, smaller stocks, now trading at a median of 15 times forward earnings, could outperform Big Tech.

Investors should watch bond yield movements and Fed decisions closely, as these will significantly impact market dynamics and potential investment opportunities.

Source: Wall Street Journal
Tags: Big TechFederal ReserveInterest RatesS&P 500
Previous Post

US Housing Market Stagnates as Buyers Push Back on Prices

Next Post

Intel CEO Defends Moore’s Law, Unveils New AI Chips to Rival Nvidia

Recommended For You

OpenAI Weighs $1 Trillion IPO Target Amid Massive AI Buildout

by Team Lumida
19 hours ago
OpenAI Hack: Why AI Companies Are Prime Targets for Cyberattacks

Key Takeaways Powered by lumidawealth.com Reuters reports OpenAI may pursue a 2026 IPO targeting a ~$1T valuation; company says an IPO is “not our focus.” Recent corporate restructuring makes...

Read more

Big Tech’s AI Capex Hits $78B in a Quarter, Testing Market Patience

by Team Lumida
19 hours ago
a black square with a blue logo on it

Key Takeaways Powered by lumidawealth.com Alphabet, Meta, and Microsoft spent ~$78B on capex last quarter, +89% YoY, mostly for AI data centers and GPUs. Stocks split: Meta and Microsoft...

Read more

Nvidia Becomes First $5 Trillion Company as AI Supercycle Accelerates

by Team Lumida
19 hours ago
Nvidia’s Stock: Is It Too Good to Be True Now?

Key Takeaways Powered by lumidawealth.com Market cap hits ~$5.03T with shares at $207.16; first company to cross $5T. AI demand drives scale: ~6M Blackwell GPUs shipped; ~14M on order....

Read more

Alphabet Posts Record Quarter as AI Demand Lifts Cloud; Capex Guide Jumps to ~$93B

by Team Lumida
19 hours ago
China Stimulus: Enough to Sway Markets?

Key Takeaways Powered by lumidawealth.com Q3 revenue rose 16% to $102.3B; net income up 33% to ~$35B; shares +6% after-hours. 2025 capex guided to $91–93B vs $52.5B in 2024,...

Read more

Nvidia CEO Downplays AI Bubble Fears as He Enlists New Partners

by Team Lumida
2 days ago
Nvidia’s AI Demand Surge: Hon Hai Ramps Up Server Production

Key Takeaways Powered by lumidawealth.com Nvidia CEO Huang announced flurry of partnerships at Washington GTC conference, said Blackwell/Rubin chips on track to generate $500B revenue through 2026. Expects to...

Read more

Tesla’s Cybercab Backup Plan: Sell It With a Steering Wheel

by Team Lumida
2 days ago
a car's speedometer with red lights

Key Takeaways Tesla board chair Robyn Denholm said Cybercab (long-promised affordable EV) can have steering wheel/pedals if needed—crucial wiggle room vs. Musk's "pointless" $25K regular model comment a...

Read more

OpenAI’s Promise to Stay in California Helped Clear the Path for Its IPO

by Team Lumida
2 days ago
OpenAI Hack: Why AI Companies Are Prime Targets for Cyberattacks

Key Takeaways Powered by lumidawealth.com OpenAI CEO Altman assured California AG Bonta the company would stay in California and expand, clearing path for corporate restructuring and potential IPO as...

Read more

Qualcomm Launches AI Chips to Challenge Nvidia’s Dominance

by Team Lumida
3 days ago
Qualcomm Launches AI Chips to Challenge Nvidia’s Dominance

Key Takeaways Powered by lumidawealth.com Qualcomm shares jumped up to 20% Monday after announcing AI accelerator chips AI200 (shipping 2026) and AI250 (2027) to rival Nvidia; available as stand-alone...

Read more

Amazon to Lay Off Up to 30,000 Corporate Workers

by Team Lumida
3 days ago
Amazon’s $100 Billion Bet: AI Over Retail

Key Takeaways Powered by lumidawealth.com Amazon cutting up to 30,000 corporate employees (~10% of white-collar workforce) starting Tuesday, largest layoffs since 27,000 eliminated in 2022; hits HR, AWS, advertising,...

Read more

AI-Power Stock Rally Shows Cracks as Investors Reassess Electricity Demand Surge

by Team Lumida
4 days ago
AI-Power Stock Rally Shows Cracks as Investors Reassess Electricity Demand Surge

Key Takeaways Powered by lumidawealth.com A UBS “AI power demand” basket fell 12% in five sessions, worst drop since February. Oklo plunged 30% and Vistra 12%, reflecting doubts about...

Read more
Next Post
a close up of a computer board with the intel core logo on it

Intel CEO Defends Moore’s Law, Unveils New AI Chips to Rival Nvidia

Market Jitters: US Stocks Drop Amid Economic Concerns, Indian Markets Plunge

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

Instacart Q2 2024 Earnings Highlights: Strong Growth and Profitability

Instacart Q2 2024 Earnings Highlights: Strong Growth and Profitability

August 7, 2024
a cell phone sitting on top of a desk next to a laptop

Charles Schwab Q2 2024 Earnings Summary

July 16, 2024
high-angle photography of grocery display gondola

TreeHouse Foods Faces Slowdown as Shoppers Cut Back on Even Cheaper Groceries

March 5, 2025

Subscribe to Lumida Ledger

Browse by Category

  • Lifestyle
    • Family Office
    • Health and Longevity
    • Next Gen Wealth
    • Trust, Tax, and Estate
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Latest
    • Macro
    • Markets
    • Real Estate
  • Research
    • Trackers
  • Themes
    • Aging & Longevity
    • AI
    • Biotech
    • CRE
    • Cybersecurity
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
    • Software
Facebook Twitter Instagram Youtube TikTok LinkedIn
Lumida News

Premium insights to help you invest beyond the ordinary. Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser

CATEGORIES

  • Aging & Longevity
  • AI
  • Alt Assets
  • Biotech
  • CRE
  • Crypto
  • Cybersecurity
  • Digital Assets
  • Equities
  • Family Office
  • Health and Longevity
  • Latest
  • Legacy Brands
  • Lifestyle
  • Macro
  • Markets
  • News
  • Next Gen Wealth
  • Nuclear Renaissance
  • Private Credit
  • Real Estate
  • Software
  • Themes
  • Trackers
  • Trust, Tax, and Estate

BROWSE BY TAG

AI AI chips AI demand Amazon Apple Artificial Intelligence Banking Bitcoin China Commercial Real Estate CPI Crypto Donald Trump EARNINGS ELON MUSK ETF Ethereum Federal Reserve financial services generative AI Goldman Sachs Google India Inflation Interest Rates Investment Strategy Japan Jerome Powell JPMorgan Markets Meta Microsoft Nasdaq Nvidia OpenAI private equity S&P 500 SEC Semiconductor stock market Tech Stocks tesla Trump Wells Fargo Whale Watch

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018

No Result
View All Result
  • Home
  • Earnings
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018