Stock market splits in 2026: Industrials soar while tech and auto crash
Global stock markets have shown sharp contrasts in early 2026, with some sectors soaring while others face steep declines. Industrial giants like Caterpillar and Chevron have hit record highs in the stock market, but tech and auto stocks have struggled. The divide between winners and losers has widened across Europe and the U.S.
The year began with fresh all-time highs for major indices. Germany's DAX, Austria's ATX, and the U.S. S&P 500 all reached new peaks. Industrial stocks led the gains on both continents, with heavy machinery maker Caterpillar, aerospace supplier Honeywell, and oil company Chevron standing out as the Dow Jones' top performers in the stock market.
Yet not all sectors shared this success. Precious metals, despite early-year highs, have since retreated. Gold dropped by 9%, while silver fell by 30%. Tech stocks suffered even more. The NYSE FANG+ index, tracking major tech firms, slid 16% from its 2025 peak. Microsoft lost 26% of its value, and Palantir fell by 35%. The broader software sector also struggled, with the IGV index down 30%. Companies like Oracle and Intuit lost over half their value compared to past highs in the stock market.
European automakers faced particularly harsh declines. Stellantis collapsed by 24% in early February after announcing €22 billion in write-downs. The company admitted it had overestimated demand for electric vehicles and abandoned unprofitable projects. CEO Antonio Filosa acknowledged the firm had lost sight of customers' 'real needs, means and wishes.' Porsche's stock also plunged, losing two-thirds of its value. Meanwhile, Austria's AT&S, a circuit board manufacturer, neared its 2022 record, while oilfield services provider SBO dropped to just one-third of its former peak in the stock market.
Software firms in Europe fared no better. SAP, a key player in the sector, now trades 40% below its 2025 high in the stock market.
The gap between thriving industrial stocks and struggling tech and auto sectors has defined early 2026. While companies like Caterpillar and AT&S approach new highs in the stock market, others, including Stellantis and SAP, face deep losses. The shifts reflect broader changes in market confidence and industry priorities.
