AI trade is leading the stock market again: Chart of the Day

Tue, April 14, 2026 at 6:00 AM EDT 2 min read

The stock market’s old winners are taking over again.

The Technology (XLK) sector just notched its ninth straight day of gains — its longest streak since December. The leadership behind that run looks a lot like the trade that powered the last bull market.

During the sell-off from Feb. 27 through March 30 — a stretch that covered the start of the US-Iran war — Energy (XLE) was the only sector in the green, rising 11%, while tech fell 8%.

The tech sector is leading gains off the March 30 general market low. Meanwhile, energy has been trending down recently after leading in the prior period.

Since the March 30 low, that script has flipped. Tech has jumped 14%, the best gain in the market, while energy has fallen 8%, the worst. Industrials (XLI), Consumer Discretionary (XLY), and Real Estate (XLRE) have also rebounded sharply, but the biggest leadership swing has come from the market’s old growth winners.

Inside tech, semiconductors have still done most of the heavy lifting. The iShares Semiconductor ETF (SOXX) soared 27% during the nine-day rally — its best run over that span since November 2002.

Software had looked like the weak link for most of the move. But that changed on Monday. The iShares Expanded Tech-Software Sector ETF (IGV) ripped higher and completed a bear trap — briefly breaking below its February and March lows on Friday before surging back above them. In technical analysis, that kind of reversal is often seen as a bullish sign.

That matters because it suggests this rally may be broadening inside tech, not just narrowing into chip stocks.

The divide is still visible in megacap growth stocks, even if software has just started to improve. Nvidia (NVDA) has jumped 14% since March 30, while Microsoft (MSFT) is up 7%, and Tesla (TSLA) is still in the red. Amazon (AMZN) and Alphabet (GOOG, GOOGL) have also been standout winners.

The next test is whether this leadership flip sticks — or whether the next geopolitical jolt sends investors right back into the war trade.

Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.com.