Investors shift to overseas stocks amid Fed uncertainty and tech concentration

Uncertainty over the Federal Reserve’s decision to keep interest rates unchanged and the lack of forward guidance has prompted investors to look beyond U.S. equities. Chinese companies listed in the United States, such as Alibaba Group Holding, have been viewed as defensive assets; the Nasdaq Golden Dragon China Index rose 1.7% while the broader Nasdaq‑100 fell 2.1%.

At the same time, concerns about the heavy weighting of the “Magnificent Seven” technology giants in major U.S. indexes are driving diversification. Janus Henderson Investors portfolio manager Julian McManus told CNBC that advisers and investors are increasingly open to allocating capital to European banks, Japanese banks and insurers, as well as select firms in South Korea and China, without describing the move as a panic.

Both trends reflect a broader shift toward overseas markets as investors seek returns and risk mitigation amid mixed U.S. market dynamics.