Bloomberg Surveillance · Friday, July 24, 2026
Keith Lerner of Truist notes a significant rotation in the stock market, moving away from the dominance of big tech (like the Magnificent Seven) towards other sectors such as energy, industrials, and financials. This rotation is driven by tech stocks becoming overvalued and the broader economy proving resilient despite higher interest rates.
“Even yesterday, you know we had that, you know, some big cap tech names down a lot, and then you looked at the board yesterday you had energy up you had industrials up, you had financials up, you had healthcare up.”
“So you know, you had expectations we set higher. It was one sector that's very dominated, and now that money is rotating to other areas, and to the point that you just discussed, it's not leaving the market, it's just rotating to other areas.”
“I would trade a stronger economy within a week or one with a little bit higher rates, and I think that's what the market's doing because ultimately that should still feed into stronger earnings, which continues to be the north star of this bull market.”