The technology sector has dominated the market narrative for much of the last decade. However, 2026 is experiencing a shift. The tech sector is getting slumped, driven by valuation pressures, profit taking, and macroeconomic uncertainty.
Meanwhile, the energy, industrials, and materials sectors have emerged as some of the best sectors outperforming tech in 2026, benefiting from rising commodity prices, infrastructure spending, ongoing wars, and a broadening global economic cycle. The Technology Select Sector SPDR ETF (XLK) is down 2.43% year-to-date (YTD), while the energy, industrials, and materials sectors have outperformed by a wide margin.
