Tech giants’ aggressive spending weighs on cash flow
The US equity market has experienced a sharp decline in free cash flow yield relative to more value-oriented markets.
Free cash flow has come under increasing pressure as tech giants spend aggressively on capex to support their AI ambitions.
The equally weighted S&P has outperformed the S&P 500 by more than 7.3% for the first time since 2009, supported by the resilience of broader economies and a pick-up in M&A.