Wall Street Hasn't Done This Since The Ukraine Invasion

Benzinga

Wall Street is experiencing a sector rotation not seen since February 2022.  Through Feb. 26, 2026:  • XLE has outperformed XLK by 27 percentage points • OIH vs IGV shows an 80-percentage-point performance gap • RSP has outperformed SPY by 5 percentage points year-to-date • Equal weight indices have beaten cap-weighted benchmarks for four consecutive months  Unlike 2022, this shift isn’t driven by an oil supply shock or war escalation. It’s driven by artificial intelligence.  AI may be digital, but it requires physical infrastructure: energy, materials, utilities and industrial capacity.  Goldman Sachs calls the theme HALO — Heavy Assets, Low Obsolescence.  The market may be repricing what scarcity looks like in an AI-driven economy.

Transcript

00:00Wall Street just triggered a market shift we haven't seen since Russia invaded Ukraine.

00:05Back in 2022, money rushed into energy as oil spiked and tech sold off.

00:09Now, it's happening again, but there's no war and no oil shock.

00:14Through February 26th, the Energy Select Sector Spider, ticker XLE,

00:18has outperformed the Technology Sector Selector Spider, XLK, by 27 percentage points.

00:25And it gets bigger. The VanEck Oil Services ETF, OIH, versus the tech software ETF, IGV,

00:32an 80 percentage point performance gap in just two months.

00:36That's the largest divergence since early 2022.

00:40Investors aren't leaving stocks. They're rotating inside them.

00:43Energy, materials, and industrials are leading. Tech might be lagging some.

00:48Here's the paradox. AI was supposed to lift tech.

00:51Instead, AI runs on data centers, power grids, steel, and infrastructure.

00:56Goldman Sachs calls it Halo, heavy assets, low obsolescence.

01:00In an AI economy, scarcity may not be code anymore. It might be electricity.

Category

Transcript

Comments

Recommended