Shift driving continued market gains
The year has started positively for global equity markets, but with shifts beneath the surface as investors increasingly seek breadth and risk diversification. This has benefited more traditional companies, while technology companies, for example, have shown mixed results.
Despite ongoing geopolitical unrest and uncertainty, the global economy remains on a solid foundation. This is reflected in the current earnings season, where many companies have met or exceeded expectations. Most recently, strong US job figures have reinforced this picture.
"Economic indicators continue to point to a robust global economy, and corporate earnings have generally been better than expected. This has helped sustain market optimism, although it is marked by greater caution, especially after the market gains of recent years," says Tine Choi Danielsen, Chief Strategist at PFA.
She notes that behind the market gains, there are signs of a rotation, with more critical focus on technology companies that have driven the stock market in recent years.
"Major US technology companies have in recent years invested billions in energy infrastructure and other development initiatives, and increasingly, unlike before, this is done with borrowed money. It is therefore natural to question whether these investments will pay off. At the same time, we have seen AI developments accelerate the obsolescence of some of the products that the tech sector itself has on its shelves. This has, for instance, affected companies such as Microsoft, SAP and Salesforce," says Tine Choi Danielsen.
The double-edged AI sword
Not all technology companies have been hit by share price declines, and according to the Chief Strategist, this is not a wholesale rejection of the sector. Instead, it reflects investors' desire to diversify risk and build more robust portfolios in a market where technological advancements have increased uncertainty and raised questions about who will ride the AI wave and who will be left behind.
"It is only healthy if equity gains become more broadly distributed, and the concentration of market value among large technology companies decreases. This has so far been the case in 2026, where the US Dow Jones Index and European equity indices – where industries such as manufacturing, finance and consumer goods carry more weight than in Nasdaq – have performed relatively better in the first months of the year."
According to Tine Choi, PFA is closely monitoring developments and has recently shifted its focus slightly more towards Europe, while remaining optimistic about the year – including for US companies. Just as last year, currency considerations, particularly the dollar, remain an important factor in managing overall exposure.