Excluding AI and energy stocks, the S&P 500 has posted negative returns in 2026, highlighting sector concentration risks.
The S&P 500’s rally in 2026 is driven by a narrow group of sectors, with artificial intelligence and energy stocks offsetting declines elsewhere. Without these two sectors, the index would be in negative territory for the year.
Analysts note the divergence reflects uneven economic growth and investor focus on high-growth areas. The broader market’s underperformance contrasts with the index’s overall gains, raising concerns about concentration risk.
The trend underscores the dominance of a few industries in driving equity returns, while other sectors lag behind.