Trade rotation has been the big stock market story so far in 2026. AI hyperscalers are still allocating significant capital toward their goals, but these ambitions aren’t being rewarded as they were in previous years. Instead, money has been flowing into more defensive sectors such as consumer staples and industrials as investors digest weak U.S. economic data. Major indices are still within a hair of all-time highs, but this dispersion has given some participants pause as a broadening market often hides underlying weakness. Today, we’ll look at one industry where the current market environment is actually boosting its long-term outlook: insurance.
