Sector Rotation: Tech Weakness, Defensives and Cyclicals Gain

Broad rotation out of Mag 7 and semiconductors into healthcare, financials, staples, and materials. Equal-weight S&P 500 up 4% vs cap-weighted down 2.4% since June. The broadening narrative is being tested by Mag 7 earnings this week. Chipmaker rout (SOX) and AI spending concerns are key drivers.