‘Gentle bubble’ forming in US tech stocks

The rejigging underscores how investors are increasingly questioning whether the cohort can repeat last year’s performance, when an index of the seven stocks more than doubled versus the S&P 500’s 24% gain. — Reuters

SINGAPORE: Capital Group Cos is shuffling stakes in US technology names amid the blowout rally in the Magnificent Seven megacaps.

The US$2.5 trillion manager trimmed holdings in stocks whose outperformance had markings of a “gentle bubble”, and raised stakes in some large semiconductor companies beyond the chip-making darling Nvidia Corp, Andy Budden, investment director for equities said at a briefing in Singapore.