Wall Street’s Rotation Into Value Has a Dot-Com Warning to It

The three-month slump in US technology stocks has left long-downtrodden value stocks looking relatively strong. There’s growing consensus on Wall Street the shift is just getting started.

The Russell 1000 Value Index (RLV) has advanced 8.6% from early November to Tuesday, beating its growth counterpart by 14 percentage points. Prior periods of such outperformance have led to further gains for value versus growth.

But there is a dark lining: The last two times the value index outperformed its growth counterpart by this much during a similar time span was during a bear market rout in 2022 and the early days ...