Investors look beyond tech as US market rally broadens
US investors are shifting their focus from technology giants to other sectors in the stock market. Experts say that areas like industrial, healthcare, and small-cap companies are now attracting more attention. High valuations in tech and uncertainty around artificial intelligence have pushed investors to seek value elsewhere. Analysts believe this could lead to a more balanced market with multiple sectors contributing to growth.
TLDR
- Shares of tech leaders such as Nvidia, Alphabet, and Broadcom have driven the S&P 500’s strong performance, but investors are now exploring other sectors.
- Industrial, healthcare, and small-cap stocks have recently outperformed the broader S&P 500, while tech stocks have seen some declines.
- The “Magnificent Seven” tech companies, including Nvidia, Alphabet, and Apple, are projected to grow earnings by 23.5 per cent in 2026, while the rest of the S&P 500 is expected to see a 13 per cent rise, according to LSEG.
- Technology remains a major force in US equities, making up about one-third of the S&P 500’s weight and expected to post more than 30 per cent earnings growth in 2026, compared with 15.5 per cent for the index as a whole.
- Analysts say a broader rally could sustain the US stock market in 2026, with more sectors contributing to growth instead of relying solely on tech megacaps.
