The great American digital shift? Big tech has been a key driver of US stock valuations

Deep Dive into US equities

Looking back over the past year, uncertainty around both the impact and duration of the coronavirus pandemic weighed greatly on global value stocks, which include many cyclical companies such as those in the energy and financials sector with earnings closely tied to the economy.

Meanwhile, some of the growthier names such as Amazon and Netflix benefitted from lockdowns around the world.  As uncertainty wanes, cyclical stocks are making a comeback. Globally, we are seeing some signs of economic recovery from the coronavirus crisis. Big tech adapts to service locked down economies Hopes mount on accelerated roll-out of vaccines and a promising US fiscal stimulus, which would spur positive knock-on effects on global economies. This has driven investors to favour global value over growth during the past three months.  The market rotation out of growth stock...