An active sell-off in the tech sector (AMD, NVIDIA stocks) is now weighing on the S&P 500 Index (SPX). This market sentiment is fueled by increasing concerns over the monetization of unexplored artificial intelligence (AI) technologies. Clearly a wild card, this industry raises significant doubts that sky-high costs will deliver meaningful returns. From a technical perspective, the price has just retreated from the resistance level at $7,000. Momentum indicators (RSI, MACD) are issuing a sell signal on the SPX daily chart, suggesting that the index could pull back to the $6,700–$6,800 support range. It is important to note that a seasonal correction is quite typical for February.
Nevertheless, in the medium term, the S&P 500 is highly likely to strengthen, with companies’ earnings surging 14% in 2026 compared to an 11% jump in 2025.
From 2024 to 2025, firms included in SPX spent hundreds of billions of dollars to purchase chips and build data centers (CAPEX). A monetization phase is expected this year. Companies outside the tech sector (banks, retail, healthcare) are beginning to implement AI agents, reducing operating costs and increasing margins.
The corporate software (SaaS) segment is poised for a boom, with pay-for-service AI features bringing in more cash for companies like Microsoft, Salesforce, and Adobe.
Just two years ago, in 2024, the Magnificent Seven were the only drivers of profit growth. In 2026, the picture will be different, as many market segments are set to integrate artificial intelligence into their processes. Let’s take a look at the most notable sectors:
Healthcare. Profit growth of more than 15–18% is forecast due to the widespread adoption of anti-obesity medications (GLP-1) and a new cycle of approvals for biotech drugs.
Finance. M&A (mergers and acquisitions) and IPOs are expected to pick up after a brief lull, which will significantly increase commission income for major banks (JPMorgan, Goldman Sachs).
The overall recommendation is to buy SPX when the price reaches $6,820. Profits should be taken at $7,040. Stop Loss could be set at $6,700.
The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
