This entire market is currently being carried by tech stocks.
Look at sector performance over the last month:
Tech: +8.14%
Industrials: -5.7%
Financials: -6.3%
Materials: -7.3%
Real Estate: -8.1%
Utilities: - 8.9%
But tech is growing earnings at such a rapid rate that the valuation multiple of the market has actually declined in 2026, despite the fact we're up double digits.
26
25
196
15,363
That is the tension.
Strong tech earnings can make the index look healthier even as market breadth deteriorates underneath it.
If earnings keep outrunning prices, valuation compression is real. But concentration creates a different risk: fewer companies are being asked to justify more of the market’s return.
The next test is not whether tech keeps rising.
It is whether earnings strength begins to broaden beyond tech.
Sep 26, 2026 · 4:02 PM UTC
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