A Big Rebalancing Is Underway In The Market's January Rotation

By Michael Msika, Bloomberg Markets Live reporter and strategist

There’s a major rebalancing at play between some late-2025 laggard and winning sectors.

Favorable seasonality for stocks under the so-called January effect is getting an additional boost for now from investor rotation. Defense stocks are giving resurgent industrials a lift, while tech stocks are advancing again thanks to demand for semiconductor names.