Earnings anxiety is driving mixed sentiment as investors brace for major tech earnings this week, with particular focus on whether massive AI investments are actually paying off in revenue growth.
Healthcare leads defensive rotation with UnitedHealth drawing heavy attention after forecasting 2026 profits slightly above estimates, suggesting investors are seeking stability amid tech uncertainty.
Energy markets flash warning signals as crude oil breaks below key technical levels while natural gas surges on winter demand, creating a split that could signal broader commodity volatility ahead.
Quality rotation opportunity emerging as analysts trim positions in extended names like Axos Financial after strong runs, while defensive sectors like healthcare gain favor during earnings season uncertainty.
Watch for earnings-driven volatility this week as communication services and technology sectors face the ultimate test of whether their AI investments justify current valuations—expect sharp moves in either direction based on guidance.