In 2026 the Dow Jones Industrial Average has defied expectations by consistently beating the broader S&P 500, even as major tech stocks struggle with valuation pressures and AI uncertainty. A combination of strong performance in industrials, defensives and cyclical value sectors — along with the Dow’s price-weighted structure — has helped lift the index to historic highs, reflecting a broader rotation of capital away from growth-heavy segments toward earnings-driven names.

On Tuesday, we addressed the rotation of capital out of software companies in this analysis and how investor attention in 2026 is starting to expand beyond a narrow group of the biggest growth and AI titles. Today, we'll pick up on that specifically through the lens of the Dow Jones Industrial Average $^DJI, which is holding near all-time highs and has outperformed the S&P 500 for a number of periods this year.

And it's no coincidence. In fact, performance is based directly on the index's construction, its sector…