The year’s biggest winners are getting hit hardest on Monday. The rest of the market is holding up.
The best-performing 10% of S&P 500 (^GSPC) stocks this year are the index’s weakest group to start the new week, falling about 1.6% on average by midday Monday, according to Yahoo Finance calculations.
The pain gets worse at the very top. Nineteen of the 20 biggest winners of 2026 were lower, with the group down 2.7% on average.
Sandisk (SNDK), still up more than 500% this year, was down more than 7%. Micron (MU) and Western Digital (WDC) were both down more than 5% after entering Monday with triple-digit gains for the year.
The weakness in chips has been building. Last week, the iShares Semiconductor ETF (SOXX) rallied into an area of key technical resistance and sold off sharply.
The SOXX slid to a three-week low Monday morning before finding buyers around the big $500 level. Software stocks were also under pressure.
But that’s only half of Monday’s market.
“It’s been a massive amount of rotation,” Fundstrat head of technical strategy Mark Newton told Yahoo Finance on Monday morning.
Newton noted that leadership has moved through energy and technology this year, while financials, industrials, and healthcare have stepped in as different pieces of tech went through their own pullbacks.
The other side of the rotation was flashing green.
While Technology (XLK) was the worst-performing S&P 500 (^GSPC) sector, Consumer Staples (XLP), Financial Services (XLF), and Communication Services (XLC) were each up more than 1%. The Financial Select Sector SPDR Fund (XLF) rallied to within $0.03 of a record intraday high, which would have been its first in more than two weeks.
This rotation has been developing for months. Healthcare was already breaking out as chips entered a bear market, while some of the market’s riskiest trades were leading the charge less than two weeks ago.
Now those leaders are giving ground, but the selling hasn’t swallowed the broader market. About 56% of S&P 500 stocks were higher Monday morning, even as the index itself dipped.
Nearly four years into the bull market, that’s a much different picture from everything heading south together.
“We know that sector rotation has provided a decent amount of breadth of this market,” Newton said.
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.
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