The balance has shifted in global stock markets: The year's leader became the sector with the most losses

Global equity markets saw a sharp rotation out of technology stocks in the second half of the year, with the information technology sector falling more than 11% after gaining 28.4% in the first half—making it the year's worst-performing sector after leading it. Investors shifted toward healthcare, energy and consumer staples as concerns mounted over artificial intelligence spending and the 2027 economic outlook, according to analysts cited in the report. The reversal matters because it signals waning confidence in the AI-driven rally that had powered global benchmarks. What to watch next is whether the defensive rotation persists into 2027 and whether AI capital expenditure guidance from major tech firms stabilizes the sector.