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Nvidia has lost nearly $1.5 trillion of market value since October 6, while the equal weight S&P 500 index gained 4% during the same period.
Lisa Abramowicz, a journalist and co-host at Bloomberg, described the recent rotation in stocks as violent and said the churn in the market shows either incredible resilience or a lack of true capitulation.
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In October, Lisa Abramowicz reported that the return gap between the S&P 500 equal-weight and market cap-weight indexes was the widest for any month since April 2009, signaling unusual market divergence at that time. The S&P 500 weighting gap highlighted shifting investor behavior in major equities. Separately, Microsoft offered buyouts to 60,000 employees, which raised questions about AI disruption in the tech workforce, as noted by Abramowicz in a previous report.