Experts predict the end of the leadership of Big Tech shares by the end of the year

The last rally in the American stock market began in October 2022, and its momentum was provided by the growth of shares of the largest technology companies, which continues to this day. However, analysts predict a decline in revenues for Big Tech companies by the end of 2024, so investors should consider other market segments.

Experts expect that profit growth of large technology companies will slow down sharply, while manufacturers of materials and the healthcare sector will show significant growth, increasing profits by 25% by the fourth quarter. Cyclical sectors such as energy, materials, consumer lending, industry and finance also look attractive for investment, where indicators are expected to improve in the second half of the year.

The rotation of investments has already begun. Clients of Bank of America Corp. (NYSE) in the week ending May 31, they withdrew almost $2.2 billion from shares of Big Tech companies, which was the second-largest indicator for the bank since 2008.

However, withdrawing funds from assets does not mean completely abandoning investments in Big Tech. Since the beginning of the year, the S&P 500 index has grown by 12% thanks to the five largest stocks — Microsoft Corporation, Apple Inc., NVIDIA Corporation, Alphabet and Amazon.com — amid the artificial intelligence boom. 

These companies increased their market value by $2.9 trillion, and the information technology sector became the largest in the S&P 500 index with a weight of 31%. It is followed by finance and healthcare with a share of about 12%.