Equities Rotation Beyond AI Leaders Accelerates Before Q2 Earnings

The first half of 2026 belonged to artificial intelligence and the infrastructure that powers it. Tech and construction shares led the rally. That leadership is now fading. Investors are rotating into energy, value, and small-cap stocks. The shift began in late June and has picked up over the past two weeks.

Oil Pierces $100 as US Strikes Iran From Caspian to Gulf Energy producers have been the biggest beneficiaries of the rotation. Oil prices jumped above $100 a barrel after the U.S. struck Iranian targets. Utilities and financials have also drawn fresh money.

The rotation faces its first major test during the second-quarter earnings season, which starts in two weeks. The breadth of earnings beats across sectors will show whether the shift is real or just a temporary pause in the AI trade.