The Tech Comeback in the Stock Market

The stock market has experienced a significant comeback for tech companies in the first half of the year. This rebound is primarily concentrated within the larger, profitable tech companies, creating a redistribution of value from smaller, money-losing tech companies. The comeback is driven by the recognition that these big tech companies have built significant buffers and can cut costs without affecting revenues. This has resulted in increased profitability and stronger margins, despite employing fewer people. The market is showing signs of animal spirits returning.