Metals & Chips Lead While Food & Telecom Sink: US Industry Leadership Turns Sharply Cyclical

Cyclical sectors tied to metals, semis, capital markets and tech hardware are dominating, while food products, telecoms and low‑growth consumer defensives lag.

IMGELD Date: Jan 11, 2026

US industry strength is concentrated in Metals & Mining, Semiconductors, Capital Markets, Electronic Equipment and Aerospace & Defense, supported by strong demand for critical materials, AI infrastructure and a firmer outlook for defense and financial activity.
On the consumer side, Specialty Retail and segments of Media and Entertainment remain resilient, but broad Consumer Staples and Food Products are notably weak.
Energy-related groups are mixed, with select Oil & Gas names still scoring well despite hedge fund outflows from the sector.
Health Care shows a split profile, with Health Care Equipment & Supplies benefiting from capital markets support, while Health Care Providers & Services are more subdued.
Telecom-oriented industries, Diversified Consumer Services and parts of Utilities sit in the bottom of the ranking, reflecting structural and demand headwinds.

Top 10 Strongest Industries
(Long bias)

1. Metals & Mining
   Final Score: 95.70
   Before: #1 → Now: #1
   Why they are strong: Demand for critical minerals across the energy transition and advanced manufacturing is broadening, lifting the strategic importance and pricing power of metals producers.
   Key Players: Freeport-McMoRan, Newmont, Southern Copper

2. Semiconductors & Semiconductor Equipment
   Final Score: 94.89
   Before: #2 → Now: #2
   Why they are strong: Semiconductor and chip-equipment names are riding continued investment in AI and advanced computing infrastructure, which is underpinning robust demand for leading-edge components.
   Key Players: NVIDIA, ASML, Taiwan Semiconductor Manufacturing

3. Capital Markets
   Final Score: 92.46
   Before: #3 → Now: #3
   Why they are strong: Despite recent equity volatility, trading and investment activity remain elevated, supporting revenue opportunities for capital markets firms.
   Key Players: Goldman Sachs, Morgan Stanley, Charles Schwab

4. Electronic Equipment, Instruments & Components
   Final Score: 91.91
   Before: #4 → Now: #4
   Why they are strong: Grid and power-equipment manufacturers are accelerating US investment to relieve supply bottlenecks, underpinning healthy order books and capacity expansion.
   Key Players: Eaton, Schneider Electric, Siemens

5. Aerospace & Defense
   Final Score: 84.92
   Before: #5 → Now: #5
   Why they are strong: Global defense stocks are advancing as expectations rise for a higher US military budget, reinforcing multi‑year spending visibility for defense contractors.
   Key Players: Lockheed Martin, Northrop Grumman, RTX

6. Technology Hardware, Storage & Peripherals
   Final Score: 82.64
   Before: #7 → Now: #6
   Why they are strong: Data‑storage vendors are benefiting from an AI-driven surge in demand for high‑capacity drives and infrastructure, which has sharply boosted sector sentiment.
   Key Players: Apple, Western Digital, Seagate Technology

7. Banks
   Final Score: 84.38
   Before: #10 → Now: #7
   Why they are strong: Large US banks are projected to post stronger profits on a rebound in investment banking activity, improving the earnings outlook for the group.
   Key Players: JPMorgan Chase, Bank of America, Citigroup

8. Health Care Equipment & Supplies
   Final Score: 75.55
   Before: #11 → Now: #8
   Why they are strong: Investor appetite for medical device and supplies companies has been highlighted by a major sector IPO that surged in its market debut, signaling strong capital markets support.
   Key Players: Medtronic, Abbott Laboratories, Medline Industries

9. Automobile Components
   Final Score: 69.72
   Before: #13 → Now: #9
   Why they are strong: US auto suppliers tied into leading EV platforms are seeing renewed interest as major manufacturers press vendors to secure diversified, non‑China sourcing of components.
   Key Players: Aptiv, Magna International, BorgWarner

10. Health Care Technology
    Final Score: 61.28
    Before: #16 → Now: #10
    Why they are strong: Rapid adoption of AI in health and enterprise workflows, highlighted by research on automation potential across the US workforce, is supporting demand for health tech platforms.
    Key Players: Teladoc Health, Veeva Systems, Cerner (Oracle Health)

Bottom 10 Weakest Industries
(Short bias)

47. Commercial Services & Supplies
    Final Score: 32.05
    Before: #43 → Now: #47
    Why they are weak: Slower US consumer spending and cost pressure on businesses are weighing on discretionary and outsourced service demand across commercial providers.
    Key Players: Waste Management, Cintas, Brink’s

48. Diversified Consumer Services
    Final Score: 39.32
    Before: #40 → Now: #48
    Why they are weak: US consumer spending has cooled as high prices curb demand, pressuring volumes for discretionary and non‑essential service providers.
    Key Players: Service Corporation International, H&R Block, Bright Horizons Family Solutions

49. Tobacco
    Final Score: 25.57
    Before: #49 → Now: #49
    Why they are weak: Regulatory pressure remains intense as authorities accelerate enforcement against unlicensed vaping products, forcing companies to delay new launches.
    Key Players: Altria Group, Philip Morris International, British American Tobacco

50. Food Products
    Final Score: 35.32
    Before: #50 → Now: #50
    Why they are weak: Although some food tariffs are being reduced, persistent inflation concerns and margin pressures continue to weigh on the broader packaged food space.
    Key Players: General Mills, Kellogg, Tyson Foods

51. Wireless Telecommunication Services
    Final Score: 35.32
    Before: #48 → Now: #51
    Why they are weak: With limited near‑term growth and ongoing regulatory scrutiny in communications markets, wireless carriers and related services face a challenged revenue environment.
    Key Players: Verizon, AT&T, T-Mobile US

52. Diversified Telecommunication Services
    Final Score: 7.70
    Before: #52 → Now: #52
    Why they are weak: Structural headwinds and intensified regulatory attention across telecom are weighing on diversified operators’ growth and pricing flexibility.
    Key Players: Lumen Technologies, Verizon, AT&T

53. Consumer Staples Distribution & Retail
    Final Score: 51.17
    Before: #46 → Now: #53
    Why they are weak: Softer consumer spending amid high prices is pressuring volumes and mix for food and staples retailers, limiting earnings momentum.
    Key Players: Walmart, Costco Wholesale, Kroger

54. Hotels, Restaurants & Leisure
    Final Score: 31.08
    Before: #51 → Now: #54
    Why they are weak: Slowing consumer outlays as households adjust to higher prices are constraining discretionary travel and dining budgets.
    Key Players: Marriott International, McDonald’s, Hilton Worldwide

55. Multi-Utilities
    Final Score: 39.06
    Before: #54 → Now: #55
    Why they are weak: Rising gas prices and shifting generation economics, including a coal comeback in some states, are complicating planning and investment for multi‑utility operators.
    Key Players: Duke Energy, Dominion Energy, Exelon

56. Oil, Gas & Consumable Fuels
    Final Score: 52.53
    Before: #53 → Now: #56
    Why they are weak: Hedge funds have been slashing exposure to energy stocks amid a broader equity sell‑off, contributing to underperformance in oil and gas names despite mixed fundamentals.
    Key Players: Exxon Mobil, Chevron, ConocoPhillips

Additional Readings

1. Capital Markets: Market volatility weighs on major US indexes as AI leaders retreat (CNBC, 2025-11-06)
   Dow closes lower by nearly 400 points, Nasdaq drops 1.9% as AI stocks resume their decline

2. Food Products: Tariff cuts on key food imports introduced amid inflation concerns (Reuters, 2025-11-15)
   Trump cuts tariffs on beef, coffee and other foods as inflation concerns mount

3. Industrial Conglomerates: Traditional industrial conglomerate model wanes in public markets (Financial Times, 2025-12-30)
   FTSE 100 loses the last of its industrial conglomerates

4. Automobiles: US auto sales rise despite regulatory uncertainty (Reuters, 2026-01-06)
   US auto sales defy regulatory uncertainty to rise 2% in 2025

5. Health Care Equipment & Supplies: Large medtech IPO underscores investor demand for health care suppliers (Reuters, 2025-12-17)
   Medline soars 41% in Nasdaq debut after 2025’s biggest IPO

6. Automobile Components: Auto suppliers adjust sourcing as major OEMs seek less China exposure (Reuters, 2025-11-15)
   Tesla requires suppliers to avoid China-made parts for US cars, WSJ reports

7. Multi-Utilities: Higher gas prices revive coal usage in some states, complicating utility planning (Reuters, 2025-11-13)
   Six US states to watch as rising gas prices drive a coal comeback

8. Pharmaceuticals: Weight‑loss drugs reshape competitive dynamics in pharma (Reuters, 2025-12-23)
   Novo Nordisk’s weight-loss challenge in five charts

9. Consumer Finance: Banks’ growing exposure to private credit highlights risk‑return shifts (Moody’s, 2025-10-21)
   US banks’ private credit loan exposure nears $300 billion

10. Professional Services: AI adoption threatens to automate a meaningful share of white‑collar tasks (CNBC, 2025-11-26)
    MIT study finds AI can already replace 11.7% of U.S. workforce

11. Health Care Technology: Automation potential underscores opportunity for AI‑enabled health platforms (CNBC, 2025-11-26)
    MIT study finds AI can already replace 11.7% of U.S. workforce

12. Personal Care Products: Social media drives strong US demand for Korean beauty brands (CNBC, 2025-11-27)
    TikTok-fueled K-beauty boom triggers a retail race in the U.S.

13. Aerospace & Defense: Defense equities climb on prospects of higher US military spending (Reuters, 2026-01-08)
    Global defense stocks advance after Trump calls for higher US military budget

14. Metals & Mining: Critical minerals gain prominence in the global economy (Reuters, 2025-12-29)
    Every mineral is critical in the new metals age

15. Tobacco: Regulatory scrutiny slows new vape product launches in US (Reuters, 2025-10-28)
    Exclusive: BAT pauses unlicensed US vape launch as FDA action accelerates

16. Oil, Gas & Consumable Fuels: Hedge funds cut positions in energy stocks amid market sell‑off (Reuters, 2025-10-20)
    HEDGE FLOW Hedge funds slash energy, bank stocks amid sharp stocks selloff

17. Marine Transportation: Trade-sensitive Asian economies face slower growth under new tariffs (Reuters, 2025-10-28)
    Taiwan third-quarter economic growth likely slowed on tariff impact: Reuters poll

18. Electronic Equipment, Instruments & Components: Manufacturers ramp US investment to ease grid gear shortages (Reuters, 2025-12-02)
    Grid equipment makers invest in US to ease supply shortage

19. Diversified Consumer Services: High prices cool US consumer spending growth (Reuters, 2025-12-05)
    US consumer spending slows in September as high prices curb demand

20. Banks: Profit outlook improves on rebound in investment banking (Reuters, 2026-01-07)
    US bank profits to surge on investment banking jump in fourth quarter

21. Technology Hardware, Storage & Peripherals: AI‑related demand surge boosts data‑storage vendors (Reuters, 2025-10-31)
    Data storage firms Western Digital, Seagate soar on AI-driven demand spike