AI Scare Trade Shifts Stock Sector Leadership

First Trust Advisors' March 2026 Market Minute notes that after two months into 2026 the S&P 500 is basically flat year-to-date and market leadership is shifting. The firm attributes the rotation to an 'AI scare trade' that penalizes asset-light sectors like software, insurers, and wealth managers, while asset-heavy, higher-debt industries rally. The shift may prompt portfolio reweighting and risk reassessments.