Technology stocks are getting beaten up and banks have surged as part of a broader trend that has hit the market this year, where yesterday's hot hands are today's also-rans.
The two sides have exchanged market leadership over the past week or so thanks in good part to some of the tech industry's biggest names falling hard. In the seven-day stretch, Netflix shares were off about 8.5 percent, Apple was down 6.5 percent and Alphabet fell 5.3 percent, as of trading around midday Monday.
During the same period, the financial sector broadly gained 3.3 percent with banks specifically up around 4.6 percent. Charles Schwab, Raymond James and KeyCorp have been among the financials leading the way.
The driver behind the trade, though, may be less about long-term fundamentals and more about rapid shifts of money looking for a bargain. Market pros cite a whipsaw market this year, where investor cash is chasing stocks that either have been beaten down or will benefit from the ever-changing economic winds. A stormy time in Washington has played havoc with growth expectations.
"The good news is the money continues to find a home in sector rotation. The bad news is, that's hard," said Art Hogan, chief market strategist at Wunderlich Securities. "That's where it gets dangerous, that sort of active management selection process. You have to be on the right side of trends that happen very quickly."
To Hogan's point, financials were the market darlings in the days after President Donald Trump's victory in the November election. The sector flashed higher, gaining nearly 30 percent, before flattening out and turning downward over the past three months or so.
Coversely, technology struggled initially, moved gradually higher through 2017, then spiked around mid-April. However, the market leaders have faltered lately.
"It's hard to know what flipped the switch, but we started to mean-revert," Hogan said.