Tech Rally Pushes Stocks to Records, But History Shows Leadership May Shift in February
• Tech shares have led a reluctant January stock market rally, pushing the S&P 500 to record highs • History suggests tech is unlikely to be the market leader in February • Tech is up nearly 5% in January, far outpacing the S&P 500’s 1.5% gain • Defensive sectors like tech tend to underperform in February, while cyclicals like materials and energy tend to outperform • A change in market leadership from tech to cyclicals may happen as earnings season continues