As selling hit tech and other crowded AI trades, money didn’t leave the market — it rotated. Investors pulled back from parts of tech where expectations had become stretched and shifted capital into sectors with steadier demand and clearer near-term earnings.
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Sectors that rose over the past 5 days:
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• Consumer Staples (XLP): +5.3%
• Industrials (XLI): +4.7%
• Materials (XLB): +4.6%
• Energy (XLE): +4.3%
• Health Care (XLV): +1.9%
• Financials (XLF): +1.5%
• Real Estate (XLRE): +1.3%
• Utilities (XLU): +0.2%
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Why this happened

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The AI trade ran into a reality check during earnings. Several large tech companies reported solid demand but paired it with much higher spending plans, which forced investors to rethink how soon those AI investments will translate into profits.
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• Alphabet (-3.9% 1 Week Performance) guided to $175–$185B in 2026 capital spending, nearly double 2025 levels.
• Amazon (-12% 1 Week Performance) guided to roughly $200B in 2026 capital spending, about 50% higher than last year, while also missing on earnings and offering weaker guidance.

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That combination — higher costs and longer payback periods — made some of the most crowded AI and software names less attractive in the near term.
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As a result, investors moved toward sectors where demand is more predictable and less dependent on long-dated growth assumptions. Staples, health care, energy, materials, and industrials benefited as capital shifted toward businesses tied to everyday consumption, infrastructure, and physical production rather than future AI payoffs.