The market shifts focus: capital moves from AI to finance and industry
The market is beginning to show signs of a broader rotation of capital beyond the dominance of artificial intelligence. Leading macro strategist James Thorne notes that market leadership is gradually shifting in 2026, and this is not just another burst of volatility, but the start of a sustainable trend.
A key signal is the performance of the S&P 500 Equal Weight Index, which has started to narrow its gap with the capitalization-weighted benchmark. This is an early sign that leadership is moving away from a narrow group of mega-capitalization companies. Additionally, the Vanguard Extended Market ETF, which reflects the performance of companies outside the top 500, is strengthening alongside small-cap value stocks. The iShares Russell 2000 Value ETF has also shown steady growth since the start of the year, confirming that the rally involves more than just the usual favorites in the growth sector.
Sectoral shift and chipmaker fatigue
The sectoral picture appears consistent. The financial sector is approaching its 200-day moving average, industrial companies have broken through resistance, and biotech is emerging from a consolidation phase. According to Thorne's estimates, these are cyclical manifestations of improving expectations for the real economy: capital is beginning to look beyond the mega-companies in the AI industry.
At the same time, momentum in the semiconductor sector is showing early signs of fatigue. Parabolic moves, including those in chips, should correct. Quarterly index rebalancing could amplify this shift. Thorne warns against succumbing to the widespread belief that AI is the only theme in the market.
Expert comment: The observed capital rotation is a classic sign of a mature bull market, where investors begin seeking undervalued opportunities outside overheated sectors. For the crypto market, this is indirectly a positive signal: if traditional finance and industry attract capital, it could reduce liquidity pressure on risky assets. However, the key question is whether this trend can persist without a correction in the technology sector.