ZXLB - BMO SPDR Materials Select Sector Index ETF

Oil prices remain the dominant swing factor across sectors. The market continues to trade off geopolitical headlines, with conflict duration and price direction creating uneven sector tailwinds and headwinds. This has resulted in sharp leadership shifts that are disconnected from longer term fundamentals.

With Q4 2025 earnings largely complete and 75% of S&P 500 companies beating expectations, fundamentals remain constructive. That said, market leadership in 2026 looks very different than in 2025. Energy leads at +23% year-to-date (YTD), while Technology is down -3.4%, highlighting a clear rotation away from last year’s growth leaders.