The broadening trade has been in full swing this week. Will it stick?
CNBC••business
Key Points:
- Early 2026 market trends indicate a shift from tech dominance to cyclical sectors, with consumer discretionary and materials leading gains while utilities and tech lagged.
- The S&P 500 reached multiple new intraday all-time highs this week, driven by sector rotations favoring cyclical industries amid mixed tech performance.
- Strategists suggest the cyclical trade will likely continue through the year, supported by expectations of a strong U.S. economy, Federal Reserve rate cuts, fiscal stimulus, and ongoing AI enthusiasm.
- International markets, particularly those with cyclical sector compositions like the iShares MSCI ACWI ex U.S. ETF, have started the year strong and may offer additional opportunities alongside domestic sectors.
- Investors are advised to
