There’s sector rotation. Then there’s what happened over the last few days!

There’s sector rotation. Then there’s what happened over the last few days! The high-momentum groups leading us to the upside, like tech and chips, are now withering...while the less-popular, less-exciting names, like consumer staples and health care, are shining.

Check out this MoneyShow Chart of the Day. It shows the performance of the iShares Semiconductor ETF (SOXX), the State Street Technology Select Sector SPDR ETF (XLK), the State Street Consumer Staples Select Sector SPDR ETF (XLP), and the State Street Health Care Select Sector SPDR ETF (XLV) in the last five trading days through yesterday afternoon.

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SOXX, XLK, XLP, XLV (5-Day % Change)

Source: TradingView

The gap is Grand Canyon-sized! You can see the SOXX (the red line) tanked 10.1% and the XLK (green) fell 4.6%, while the XLP (blue) rose 3% and the XLV (orange) climbed 4.3%.

For some perspective, the semiconductor ETF was outperforming the health care ETF by a whopping 120 PERCENTAGE POINTS year-to-date as of June 22. That advantage has now essentially been cut in half – in just over a month.

What gives? Concerns are growing about massive borrow-and-spend plans by top US hyperscalers – and whether all the capex investment will ever pay off. Throw in worries (again) about “circular” deal-making in the AI industry and tech stock oversupply courtesy of the IPO boom, and you can see why investors are looking for new winners.

In fact, we’ve seen an on again/off again shift into new sectors for weeks now. It’s one reason I included the following bullet point in my presentation last week at the 2026 MoneyShow Masters Symposium Las Vegas: “Recent strength in small caps, financials, health care, industrials, etc. could be the start of something more. Diversify!”

And yes, that’s what I’ll repeat here for good measure.