QUICK SPARK: Energy Overtakes Technology As 2026's Best Sector
ETF-S&P 500 SPY | 0.00 | |
Spdr Select Fund-Energy Select Sector XLE | 0.00 | |
Spdr Select Sector Fund - Technology XLK | 0.00 |
Energy has quietly taken the crown after the collapse of the June U.S.-Iran ceasefire and a fresh wave of strikes across the Middle East.
The Energy Select Sector SPDR Fund (NYSE:XLE) has risen 29.4% in 2026, overtaking technology — up 23% — as the stock market’s best-performing sector.
In July alone, XLE has climbed 9.02% while the Technology Select Sector SPDR Fund (NYSE:XLK) has slid 6.81%, the sharpest monthly split between the two groups since January 2022.
Renewed fighting between the U.S. and Iran has pushed Brent crude back near $85 a barrel, with the Strait of Hormuz — the chokepoint that carries roughly a fifth of the world’s seaborne oil — still blocked.
In parallel, a sharp selloff in chipmakers has dragged the broader tech complex down with it, triggered by fresh AI valuation fears.
The S&P 500, tracked by the SPDR S&P 500 ETF (NYSE:SPY), is up 9.3% thus far this year but flat this month.
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