What is the "Great Rotation"?

What we’ve been seeing in the stock market, as of Feb. 10^th, 2026, is the textbook definition of a "Great Rotation"—a shift in market leadership where the baton is being passed from the hyper-growth "Artificial Intelligence" stars to the broader, "real economy" sectors. Our Chief Equity Strategist and Economist, John Blank, is here now to he us understand this better.

1. Why has this been happening?

2. Have the tech stocks, especially the Mag 7, had their day in the sun?

3. There’s also a relationship here to the 10year Treasury yield. What’s that?

4. As I understand it, this divergence between the S&P 500 Value and Growth indices relative to their 50-day moving average, is a technical indicator correct? And what does it indicate regarding the market?

5. What’s the Bull case for this?

6. What’s the Bear case?

7. How long will this market trend remain in play

8. Published reports show the U.S. stock market currently underperforming global markets. How much of a concern is that?

9. What’s the bottom line for investors?

10. Three Value Stocks you’ve been watching include Barclays BCS, FedEx FDX and Tokio Marine TKOMY.

Our Chief Equity Strategist and Economist, John Blank, on the Great Rotation.

With John, I’m Terry Ruffolo.

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Barclays PLC (BCS): Free Stock Analysis Report

FedEx Corporation (FDX): Free Stock Analysis Report

Tokio Marine Holdings Inc. (TKOMY): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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