The Nasdaq Composite's wild swings have investors scrambling for safety in utilities and consumer staples, marking a stark reversal from last year's tech-driven rally. Once high-flying growth stocks now lag behind steady dividend payers as market sentiment sours on valuation concerns.

Tech sector volatility has doubled since January, with Apple and Microsoft seeing 15% price swings in recent weeks. This instability contrasts sharply with the 5% gains in traditionally defensive sectors like healthcare and energy during the same period.

The rotation reflects growing anxiety about stretched tech valuations amid rising interest rates. Money managers report the heaviest allocations to value stocks since 2020, suggesting lasting caution about growth names despite their long-term dominance.