Remember early 2022? Russia invades Ukraine, oil prices spike, defense stocks rocket higher, and tech stocks sell off on inflation fears. It was a classic, violent sector rotation triggered by a geopolitical shock.

Well, the first two months of 2026 have produced a divergence on Wall Street that looks eerily similar in magnitude—but the cause is completely different. This time, there's no war, no oil supply shock, and no sudden surge in crude. Instead, the driver is artificial intelligence, and it's redrawing the entire map of market leadership.

Through February 26, 2026, the Energy Select Sector SPDR Fund (XLE) has outperformed the Technology Select Sector SPDR Fund (XLK) by 27 percentage points. That's the largest two-month performance gap between energy and tech since that chaotic February of 2022.

If you want an even more dramatic contrast, look at the VanEck Oil Services ETF (OIH) versus the iShares Expanded Tech-Software Sector ETF (IGV). Over just two months, the performance gap has blown out to a staggering 80 percentage points. So, what's going on?

Wall Street Is Rotating, Not Retreating

Here's the crucial part: investors aren't running from stocks. They're just moving money around within the equity market. Energy, materials, and industrial stocks have been leading gains since the start of the year, while technology, communication services, and financials have lagged.

You can see this broadening in the performance of equal-weight indices. The Invesco Equal-Weight S&P 500 Index (RSP) has outperformed the cap-weighted SPDR S&P 500 ETF Trust (SPY) by 5 percentage points year-to-date. Notably, the equal-weight ETF has outperformed the cap-weighted one for four consecutive months—the longest such streak since January 2023. This is often read as a sign that returns are spreading beyond the usual handful of mega-cap tech names.

The AI Paradox

Artificial intelligence was supposed to be a rising tide that lifted all tech boats. Instead, it's creating some very clear winners and losers. Think about it: AI increases productivity, but it can also squeeze margins in businesses that are heavy on labor. If software coding, customer support, or other white-collar tasks can be automated at near-zero cost, investors start to question how durable those profits really are.

At the same time, the companies building all this AI—the ones training the large language models and running the data centers—are spending enormous amounts of money. But they're not just spending on software licenses. They're buying concrete, steel, electricity, and industrial equipment. AI may be digital, but it runs on very physical, very expensive infrastructure.

The HALO Trade and the Map of the New AI Winners

A new analysis from Goldman Sachs suggests investors are starting to price in exactly this dynamic. The firm screened companies based on two key factors: how exposed their workforce is to AI-driven automation, and how large their labor costs are relative to revenue.

Sectors like software, professional services, and media rank high on both measures. Their margins could face structural pressure if AI reduces the scarcity of certain kinds of white-collar work.

On the flip side, energy, utilities, materials, and other asset-heavy industries have lower labor intensity and are backed by more tangible assets. Goldman has dubbed the emerging leadership theme "HALO"—which stands for Heavy Assets, Low Obsolescence.

In plain English, the market may be shifting its premium from scalable code to hard-to-replicate, physical infrastructure. If this framework holds, the widening gap between energy and technology isn't just a short-term trade. It's the consequence of investors fundamentally repricing what "scarcity" looks like in an AI-driven economy. The value is moving from the virtual world back to the tangible one.