Tech stocks, including Apple, were safety trade during Covid, but this market is different

Group 1: Apple Performance - Apple has recently underperformed compared to its sector, marking its worst relative performance since December 2002, and is the only "Magnificent 7" tech stock trading below both its 50- and 200-day moving averages [1][3] - Over the past two months, Apple has declined by 0.6%, contrasting with a 25% increase in the SPDR Info Tech Sector Fund (XLK) during the same period [2] Group 2: Tech Sector Dynamics - The tech sector has historically served as a safe haven during market volatility, but recent declines in Apple have raised questions about this role [3] - Investors are heavily weighted towards tech in S&P 500 index funds and ETFs, with top tech stocks representing over 30% of the index [4] Group 3: Investment Trends - The Vanguard S&P 500 ETF (VOO) has seen significant inflows, currently at $82 billion in net inflows for 2025, more than four times the next largest equity ETF [5] - Inflows for other ETFs include approximately $9 billion for Invesco Nasdaq 100 ETF (QQQM) and $8 billion for Invesco QQQ Trust [6] Group 4: Investor Sentiment - Investors are increasingly viewing tech and AI as part of a broader portfolio strategy, rather than focusing solely on the technology sector [7] - Despite the tech sector's downturn in 2022, it remains a reliable growth area, particularly with the rise of AI and the chip sector led by Nvidia [8] Group 5: Market Volatility and Opportunities - Market volatility is seen as a buying opportunity for tech stocks, with some analysts suggesting that concerns over valuations may have cost investors in recent years [10][11] - Investors are becoming more accustomed to volatility in 2025 compared to previous periods, indicating a shift in sentiment [12]