Analysis-Investors chase cheaper, smaller companies as risk aversion hits tech sector


FILE PHOTO: Traders work on the floor as the Dow Jones Industrial Average surpasses the 50,000 mark at the New York Stock Exchange (NYSE) in New York City, U.S., February 6, 2026. REUTERS/Brendan McDermid/File Photo

Feb 8 (Reuters) - Investors are turning to cheaper, smaller companies ‌while reassessing how much risk they are willing to take owning volatile assets after market whipsaws pounded some sectors and assets.

Wariness and risk aversion have swept through some corners ‌of the market that have shone the brightest in recent years, accompanied by gains in other areas, as investors rotate their holdings. For example, the Dow ‌Jones Industrial Average, a benchmark designed to track industrial companies, hit a record high on Friday even as software stocks lost $1 trillion over the week.

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