# US stock market sector rotation and tech performance

> Live situation record from CLSTR: https://clstr.news/situations/us-stock-market-sector-rotation-and-tech-performance
> Updated: 2026-08-23T13:26:00.000Z. Sources: 5. Developments: 2.

The US stock market has experienced a shift in performance trends within the technology sector and broader market indices. In mid-August 2026, data indicated a divergence between cap-weighted and equal-weighted S&P 500 tech stocks, with the equal-weighted slice returning 45.0% compared to 32.5% for the cap-weighted version.

By late August, this trend evolved into a significant sector rotation where value stocks began outperforming growth stocks at levels reminiscent of the 2022 bear market. The Russell 1000 Value Index gained approximately 29 percent over a twelve-month period, outpacing the Russell 1000 Growth Index's 11 percent rise. 

Notably, this value-driven rally is being led by major technology companies such as Amazon, Apple, and Microsoft, rather than traditional value sectors. This movement reflects a complex interplay in how these tech giants are categorized and their impact on market rotation.

## Claims

- Amazon has become the largest single position in the Russell 1000 Value Index. (corroborated by 2 sources)
- The Russell 1000 Value Index rose approximately 29 percent over a twelve-month period, while the Russell 1000 Growth Index rose approximately 11 percent. (corroborated by 2 sources)
- The performance gap between value and growth stocks reached its widest point since 2022 in early August. (corroborated by 2 sources)
- Amazon, Apple, and Microsoft are prominent in both the Value and Growth indices. (corroborated by 2 sources)

## Timeline

### 2026-08-23: Amazon and Apple drive major US stock market sector rotation

Value stocks are significantly outperforming growth stocks, with the Russell 1000 Value Index up 29% over 12 months, driven unexpectedly by tech giants like Amazon and Apple.

3 sources. https://clstr.news/cluster/amazon-and-apple-drive-major-us-stock-market-sector-rotation

### 2026-08-19: Technology sector performance shifts as market trends diverge

Technology sector performance is shifting as equal-weighted tech stocks outperform cap-weighted indices, while major investors like Gabelli Funds engage in tactical profit-taking among top holdings.

2 sources. https://clstr.news/cluster/technology-sector-performance-shifts-as-market-trends-diverge

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Cite as: US stock market sector rotation and tech performance. CLSTR, https://clstr.news/situations/us-stock-market-sector-rotation-and-tech-performance