US cyclicals, chips and hard assets lead while software, leisure and wireless lag
Defense, semis, metals and select consumer services stay in favor as rate‑sensitive and disrupted areas continue to struggle
IMGELD Date: Feb 04, 2026
The strongest momentum sits in Metals & Mining, Semiconductors & Semiconductor Equipment, Electronic Equipment, Instruments & Components, Passenger Airlines and Banks, while the weakest areas cluster in Software, Leisure Products, Wireless Telecommunication Services, Hotels, Restaurants & Leisure and Health Care Providers & Services.
Executive Summary
Strength is concentrated in hard‑asset and technology supply‑chain industries, particularly Semiconductors & Semiconductor Equipment and Metals & Mining, which continue to benefit from robust demand for chips and renewed appetite for precious metals. Passenger Airlines also screens strong, reflecting resilient travel demand within transportation. Banks remain near the top of the rankings, supported by equity market rotation away from mega‑cap tech and into financials. On the downside, Software sits at the very bottom as investors react to AI‑driven disruption risk across the sector, while consumer‑facing discretionary segments like Leisure Products and parts of Hotels, Restaurants & Leisure remain weak. Wireless Telecommunication Services and Health Care Providers & Services also screen as notable laggards, reflecting ongoing competitive and structural pressures without clear near‑term catalysts in the provided readings.
Top 5 Strongest Industries
(Long bias)
Metals & Mining
Final Score: 94.34
Before: #2 → Now: #1
Why they are strong: Global mining stocks have been boosted by a rebound in gold and silver prices, which has lifted precious metals ETFs and improved sentiment toward miners.
Key Players: Newmont, Freeport-McMoRan, Barrick Gold
Semiconductors & Semiconductor Equipment
Final Score: 94.31
Before: #1 → Now: #2
Why they are strong: Chipmakers remain in focus as investors position around ongoing demand for semiconductors, with sector leadership persisting even as broader equity markets rotate away from some large technology names.
Key Players: NVIDIA, Taiwan Semiconductor Manufacturing, IntelElectronic Equipment, Instruments & Components
Final Score: 93.86
Before: #3 → Now: #3
Why they are strong: Hardware‑oriented technology supply chains have benefited from improved demand for electronic components alongside broader gains in mining and industrial input markets.
Key Players: TE Connectivity, Amphenol, Keysight TechnologiesPassenger Airlines
Final Score: 84.72
Before: #6 → Now: #4
Why they are strong: Airlines continue to ride resilient travel and transport demand as investors favor cyclical transportation names tied to passenger volumes.
Key Players: Delta Air Lines, United Airlines, American AirlinesBanks
Final Score: 84.18
Before: #7 → Now: #5
Why they are strong: Banks have held up as investors rotate out of parts of the technology complex, with financials drawing renewed interest in a choppy equity tape.
Key Players: JPMorgan Chase, Bank of America, Wells Fargo
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Bottom 5 Weakest Industries
(Short bias)
Health Care Providers & Services
Final Score: 27.40
Before: #50 → Now: #52
Why they are weak: Health care providers have lagged as investor attention within health care has tilted more toward technology and biopharma innovation than traditional service delivery models.
Key Players: UnitedHealth Group, Humana, HCA HealthcareHotels, Restaurants & Leisure
Final Score: 27.66
Before: #52 → Now: #53
Why they are weak: Parts of the leisure complex remain under pressure as investors favor more cyclical or asset‑backed themes and reassess discretionary spending exposure.
Key Players: Marriott International, McDonald’s, Caesars EntertainmentWireless Telecommunication Services
Final Score: 30.60
Before: #53 → Now: #54
Why they are weak: Wireless carriers continue to face competitive and capital‑intensive dynamics, with investor focus pulled toward higher‑growth technology segments instead.
Key Players: Verizon Communications, AT&T, T-Mobile USLeisure Products
Final Score: 32.12
Before: #55 → Now: #55
Why they are weak: Discretionary goods tied to leisure remain out of favor as markets weigh consumer‑spending headwinds versus more defensive or infrastructure‑linked themes.
Key Players: Hasbro, Mattel, PolarisSoftware
Final Score: 33.71
Before: #56 → Now: #56
Why they are weak: Software stocks have come under pressure as investors react to concerns that AI‑driven disruption could undercut existing business models and margins in parts of the sector.
Key Players: Microsoft, Adobe, Salesforce
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Additional Readings
Semiconductors & Semiconductor Equipment: U.S. tech leadership rotates but chipmakers stay central to market narrative (CNBC, 2026-02-03)
Article LinkMetals & Mining: Gold and silver rebound, lifting global mining stocks and precious metals ETFs (CNBC, 2026-02-03)
Article LinkBanks: Financials attract flows as markets rotate away from mega-cap tech (CNBC, 2026-02-03)
Article LinkCapital Markets: S&P 500 tumbles as investors rotate out of tech and into other sectors (CNBC, 2026-02-03)
Article LinkSoftware: Asian software stocks plunge as U.S. peers fall on fears over AI-led disruption (CNBC, 2026-02-04)
Article LinkProfessional Services: MIT study finds AI can already replace 11.7% of U.S. workforce (CNBC, 2025-11-26)
Article LinkAutomobiles: Volvo Cars’ sales volumes drop 7% in November–January period in challenging market (Reuters, 2026-02-04)
Article LinkConsumer Finance: Financial stocks fall as Trump’s credit card rate cap plan rattles investors (Reuters, 2026-01-12)
Article LinkFood Products: Trump cuts tariffs on beef, coffee and other foods as inflation concerns mount (Reuters, 2025-11-15)
Article LinkMulti-Utilities: Rising gas prices drive a coal comeback in several U.S. states (Reuters, 2025-11-13)
Article Link