If you’ve been glued to your brokerage app this week, you’ve probably noticed something kinda weird. The massive tech giants that basically carried the entire market on their backs last year are starting to look a little... tired. It’s not a crash, don't worry. But the latest share market news today shows a massive shift in where the big money is flowing, and if you're still all-in on "The Magnificent Seven," you might be feeling a bit of a squeeze.
Honestly, the "rotation" is the word of the hour. While the S&P 500 managed to scrape toward fresh record peaks this week—sitting around that 7,000+ level that analysts like LPL Financial were dreaming of—the drivers have changed. We aren't just riding the Nvidia wave anymore. We're seeing cyclical sectors like materials and industrials suddenly surging 30% or more since the start of the year.
It’s a bit like a relay race where the superstar sprinter just handed the baton to the steady long-distance runners.
The Great Tech Rotation: Why Nvidia is Catching Its Breath
Let’s talk about the elephant in the room: Nvidia. As of mid-January 2026, Nvidia (NVDA) is sitting around $186.51. It’s still a titan with a $4.5 trillion market cap, but it’s no longer just a straight line up.
Louis Navellier, the CIO at Navellier & Associates, pointed out something pretty insightful recently. He noted that the AI trade has become hyper-focused on the hardware side—the chips, the data centers, the literal nuts and bolts. But now, investors are getting a little twitchy. There’s this growing realization that while we’re building the data centers today, the massive software profits might not actually hit the balance sheets until 2027 or 2028.
So, where is the money going? It's going to the "boring" stuff.
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- Walmart (WMT): They recently integrated Google’s Gemini for a new AI shopping experience. Their stock is up over 7% already this year.
- Industrials: Think companies that build the actual power grids for these AI hubs.
- Small Caps: Investors are finally looking beyond the top 10 stocks for growth.
The Fed's "No-Cut" Reality Check
Remember when everyone was convinced we’d get six rate cuts in 2026? Yeah, about that.
Michael Feroli, J.P. Morgan’s chief U.S. economist, just dropped a bit of a bombshell. He’s predicting zero interest rate cuts for the entirety of 2026. In fact, he think the next move might actually be a hike in 2027. Why? Because the economy is just too stubborn. Job growth is accelerating, and core inflation is sticking around that 3% mark like gum on a shoe.
This is a massive point of friction right now. While the market is pricing in at least two cuts, the actual data (and the Fed's own "higher for longer" stance) suggests a different story. If you’re holding a lot of debt-heavy stocks or waiting for mortgage rates to drop to 4% again, you might be waiting a long time. Freddie Mac is seeing mortgage rates hover around 6.16%, and they’re likely to stay in the 6.3% range for most of the year.
The Earnings Season Kick-off
We’re right in the thick of January earnings, and the results are... mixed? Actually, "polarized" is a better word.
Financial heavyweights like Morgan Stanley, Goldman Sachs, and BlackRock all jumped more than 4% after their latest reports. On the flip side, some tech firms are seeing their stock prices dip even when they beat expectations. It’s that classic "priced for perfection" problem. When a stock has gone up 100% in a year, a "good" earnings report just isn't enough; it has to be legendary.
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Gold and Silver: The "Secret" Bull Market
While everyone is arguing about AI, precious metals are quietly going absolutely parabolic.
Gold just smashed through $4,600 an ounce. Silver? It surged past $90, hitting roughly $92.14 earlier this week. This isn't just retail "gold bugs" buying coins. Central banks are reportedly dumping U.S. Treasuries in favor of physical bullion.
There's a lot of geopolitical anxiety baked into these prices. Tensions in the Middle East—specifically involving U.S.-Iran relations—have cooled slightly, but the underlying "angst" about the U.S. dollar and the Federal Reserve's independence is keeping the bid for gold very high. If you haven't looked at your commodities allocation lately, the latest share market news today suggests you're missing the biggest move of the quarter.
What Most People Get Wrong About This Market
The biggest misconception right now is that a "rotation" out of tech means a "crash" for tech. That’s just not what the data shows.
The Nasdaq Composite has advanced about 54% since this bull market started in April 2025. Historically, the second year of a bull market is slower (averaging around 17% gains), but it’s still positive. We aren't seeing a bubble burst; we’re seeing a broadening.
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For the last two years, it was "The Mag Seven vs. The World." In 2026, the gap is narrowing. FactSet research suggests the "S&P 493" (everyone except the big tech giants) will see earnings growth accelerate to the mid-teens by the end of the year. This is actually a much healthier sign for the long-term economy than having five companies represent 40% of the entire market's value.
Actionable Insights for Your Portfolio
So, what do you actually do with all this?
First, check your concentration. If Nvidia and Microsoft make up 30% of your net worth, it might be time to trim a little and look at those cyclical sectors—materials and industrials are the current momentum trades.
Second, don't bet the house on a rate cut. If you're holding "zombie companies" that need cheap debt to survive, 2026 is going to be a rough ride. Look for companies with high "gross margins" (Nvidia’s is a staggering 70%) and plenty of cash on hand.
Finally, keep an eye on the commodities. The move in silver and gold isn't just a fluke; it's a signal that the world's biggest players are looking for insurance.
Stay diversified, stay skeptical of "guaranteed" Fed cuts, and keep an eye on those mid-cap growth ETFs that aren't quite as top-heavy as the QQQ. The bull market is still alive, it’s just changing its outfit.
Next Steps for You:
- Audit your tech exposure: Ensure you aren't over-leveraged in AI hardware specifically.
- Monitor the 10-year Treasury yield: If it stays above 4.2%, expect continued pressure on high-valuation growth stocks.
- Watch the January 28 Fed meeting: Pay close attention to the language around "neutral rates" to see if Michael Feroli's "no-cut" prediction starts to look like the consensus.