The post The AI fatigue: Investors pivot to S&P’s other 493 appeared on BitcoinEthereumNews.com.

Big technology companies that rode the artificial intelligence wave to huge gains are watching investors pull their money out and put it somewhere else. This could be a turning point after three years where these stocks ran the show. American stocks went up 78% while everyone was betting on AI companies. However, there are growing questions about whether these technologies can truly transform the economy and produce the enormous profits that proponents have claimed.  Ed Yardeni runs Yardeni Research as president and chief investment strategist. He’s got a name for what’s happening. “I call it ‘AI fatigue,’” he said. “I’m tired of it and I suspect a lot of other people are sort of wary of the whole issue.” Market rotation picks up steam If the trend continues, it could end an unusual period when a few stocks drove the market. Since ChatGPT’s launch in 2022, Nvidia, Microsoft, and Apple added trillions in value, with Alphabet, Meta, Broadcom, and Oracle also benefiting from the AI boom. The shift started after the S&P 500 topped out in late October, then dropped in November. It’s been gradual. Bloomberg tracks the Magnificent Seven as a group, and those stocks are down 2% since October 29 through Monday’s close. The other 493 companies in the S&P 500 went up 1.8% in that same time. Money’s been flowing out of the hot momentum stocks into sectors that are more defensive and don’t cost as much. There’s this fund called the Defiance Large Cap Ex-Magnificent Seven ETF that launched at the end of 2024. It pulled in fresh money for six months straight to close out the year. December’s inflows were actually four times what came in during November. The fund trades as XMAG and returned 15% last year. Most of that happened in the last…

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Filed under: News - @ January 7, 2026 4:26 pm