In our previous commentary regarding January performance, we highlighted the rotation away from large cap technology and into other areas of the market. This trend has accelerated in February with all seven of the MAG 7 stocks now negative on the year and small cap, value and defensive sectors all notably positive. It’s worth noting however, that even within sectors, stock selection has mattered in 2026. For example, within the Semiconductor and Hardware sectors, the average stock is up almost +20% while the cap weighted return of the sectors which is dominated by largest companies (NVDIA and Apple respectively) are close to flat through mid-February.
February 17, 2026
In our previous commentary regarding January performance, we highlighted the rotation away from large cap technology and into other areas of the market. This trend has accelerated in February with all seven of the MAG 7 stocks now negative on the year and small cap, value and defensive sectors all notably positive. It’s worth noting however, that even within sectors, stock selection has mattered in 2026. For example, within the Semiconductor and Hardware sectors, the average stock is up almost +20% while the cap weighted return of the sectors which is dominated by largest companies (NVDIA and Apple respectively) are close to flat through mid-February.