Market Rotation

AI-linked memory and semiconductor shares that dominated much of 2026 are losing momentum after a blistering run. Bitcoin has bounced from a two-year low, prompting fresh questions about whether capital is rotating back into crypto.

The Dow Jones is showing more resilience than the S&P 500 as investors rotate away from high-multiple technology stocks and into value-oriented names. A fresh EU-US trade deal may support industrial shares, though tariffs, oil volatility and inflation risks still leave room for a near-term pullback.

Bitcoin slipped back into the $60,000 area on Wednesday as the broader crypto bear market stayed intact. The move came alongside weaker gold and oil prices, while tech and AI stocks continued to attract capital.

The market’s biggest tech names and bitcoin are losing steam as investors reassess the return on massive AI spending. Capital is shifting toward semiconductors, memory stocks and other AI infrastructure plays.