Volatility May Hit Wall Street As Alphabet Facebook Leave Tech Sector Group

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SAN FRANCISCO/NEW YORK – Volatility could well be in the cards for Wall Street again early this fall, but not for the same reason stocks got rattled in February.

This time the culprit would be the largest-ever shakeup of the stock market’s broad business sectors, which will mean some of the hottest stocks, like Facebook and Google parent Alphabet, will shift from their traditional homes in the top-performing technology sector and into a deepened pool of telecommunications and media stocks.

The sweeping reorganization of the Global Industry Classification Standard, or GICS, means that funds tracking the telecom, tech and consumer discretionary sectors will be forced to trade billions of dollars of stock to realign their holdings by a Sept. 28 effective date.




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