Great Rotation Crushes Growth Stocks as S&P 500 Hits All-Time Highs: History Says Buy

The S&P 500 surges back to all-time highs amid the 'Great Rotation' into defensive sectors that has hammered growth stocks like Nvidia and Microsoft. Despite Microsoft dropping ~30% from recent peaks, its cloud revenue jumped 26% YoY, Azure grew 39% YoY, and Copilot hit 15 million paid seats. Nvidia boasts $1 trillion in cumulative chip orders and projected 71% revenue growth to $369 billion with 55% margins, while the iShares S&P 500 Growth ETF has rebounded from four drawdowns over 12%, including 24% drops in 2020 and 2022—framing the dip as a key entry point for long-term upside.