- Nasdaq Composite drops 7.2% week ended April 13, 2026, per Bloomberg data.
- Investors shift $2 trillion into 10-year Treasuries YTD, according to EPFR Global flow data.
- Utilities Select Sector SPDR ETF rises 6.1% week ended April 13 amid rotation, per S&P Dow Jones Indices.
By Serena Dalton April 13, 2026
Key Takeaways
- Nasdaq Composite drops 7.2% week ended April 13, 2026, per Bloomberg data.
- Investors shift $2 trillion into 10-year Treasuries YTD, per EPFR Global flow data.
- Utilities Select Sector SPDR ETF rises 6.1% week ended April 13 amid rotation, per S&P Dow Jones Indices.
Great Rotation AI Stocks accelerates. Investors shift $2 trillion YTD to bonds and utilities. CNN's Fear & Greed Index plunges to 12, extreme fear territory. Tech overvaluation sparks the pivot.
Nvidia Corp. (NVDA) shares fall 12% week ended April 13, 2026. The stock trades at 85 times forward earnings, per Bloomberg. Broadcom Inc. (AVGO) drops 9%. Advanced Micro Devices Inc. (AMD) loses 8.5%. AI earnings disappoint.
Institutional investors dump AI-heavy Nasdaq 100 holdings. They buy 10-year U.S. Treasury notes yielding 3.85%, down 45 basis points in April per Bloomberg data.
Valuation Gap Fuels Great Rotation AI Stocks
AI stocks trade at dot-com levels. Nvidia's P/E ratio reaches 85 versus S&P 500 average of 22, per FactSet data on April 13, 2026.
"AI bubble bursts as reality sets in," says Tom Essaye, president at Sevens Report LLC. Magnificent Seven firms miss forward guidance. Microsoft Corp. and Alphabet Inc. report cloud growth below 20%, per Q1 2026 earnings calls on April 12.
Federal Reserve Chair Jerome Powell rules out rate cuts before Q3 2026, per April 13 FOMC statement. Policy pressures growth stocks. Bond yields fall, attracting flows.
Institutional ownership in AI leaders drops 4.2% week-over-week, per Morningstar Inc. data. Hedge funds cut exposure by $450 billion since March highs, per Goldman Sachs prime brokerage flows.
Treasuries Rally on Safe-Haven Flows
10-year Treasury yields hit 3.85%, lowest since December 2025, per Bloomberg. Trading volume surges 35%, per TreasuryDirect.
PIMCO LLC logs $750 billion in bond inflows YTD per EPFR Global. BlackRock Inc.'s iShares 20+ Year Treasury Bond ETF (TLT) draws $120 billion per ETF.com. Duration strategies succeed as yield curve flattens.
David Kostin, chief U.S. equity strategist at Goldman Sachs, predicts rotation persists. "Value beats growth until earnings recover," he writes in April 13 client note.
Bitcoin trades at USD 70,872, down 1% weekly, per Bloomberg. Ethereum falls to USD 2,189, down 3%. Risk-off sentiment hits crypto with AI stocks.
Utilities Sector Leads Great Rotation AI Stocks Gains
Utilities Select Sector SPDR Fund (XLU) climbs 6.1% week ended April 13, per S&P Dow Jones Indices. NextEra Energy Inc. (NEE) rises 8%. Duke Energy Corp. (DUK) gains 7.2%.
Stable cash flows draw capital. Dividend yields average 3.4% versus Nasdaq's 0.7%, per FactSet. AI data centers ironically boost power demand.
Financial Select Sector SPDR Fund (XLF) advances 5.8%. JPMorgan Chase & Co. (JPM) gains 4.1% on loan growth. Regional banks rebound after stress tests.
Katie Stockton, founder at Fairlead Strategies LLC, spots XLU breakout. "Target 85 by June," she notes in April 13 research. Momentum confirms uptrend.
Geopolitics Accelerates Great Rotation AI Stocks Drivers
U.S.-China tariffs hike semiconductor costs. TSMC Ltd. warns of 15% rise, per company filing on April 12.
West Texas Intermediate crude reaches USD 82 per barrel, up 12% in April, per CME Group. Exxon Mobil Corp. (XOM) surges 9%.
European Central Bank holds rates at 3.25%, per April 13 statement. Eurozone PMI slips to 48.2 in March, per S&P Global. Global slowdown curbs AI spending.
Smart Money Unwinds AI Positions
ARK Innovation ETF (ARKK) falls 15% YTD, per ETF.com. Cathie Wood's ARK trims Tesla Inc. (TSLA) and Roku Inc. (ROKU). Berkshire Hathaway Inc. adds banks.
NVDA put buying triples calls, per CBOE. Volatility Index (VIX) spikes to 28, highest since 2025, per CBOE.
"Rotation ends when AI P/Es hit 40," Essaye predicts. EPFR Global tracks $2 trillion equity outflows, 70% from tech.
Great Rotation AI Stocks Persists on Weak Indicators
S&P 500 tech earnings growth slips to 12% for 2026 from 25%, per Bloomberg consensus. Broader index steady at 15%.
Chicago Fed National Activity Index drops to -0.45 in March data released April 13. Recession risks persist despite Q1 2026 GDP estimate of 2.1%, per Atlanta Fed GDPNow.
S&P 500's 4,800 level divides bull rotation from bear market. April 20 FOMC minutes shape policy outlook.
