Outlook 2026: A turning point for active management

2nd March, 2026 | Insight Article Macro & Markets
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Authored by Luc Dumontier
Authored by Greg Clerkson
Authored by Kiko Vallarta

What broadening leadership and recovering earnings could mean for active investors in 2026.  What broadening leadership and recovering earnings could mean for active investors in 2026.US markets were led by large-cap
technology and communication services, with the S&P 500 up 17.9% and the Nasdaq up 21.1%, driven by ongoing investment in artificial intelligence (AI), cloud infrastructure and productivity-enhancing technologies.

Market leadership remained highly concentrated, with a relatively small group of large-cap technology stocks accounting for a disproportionate share of index returns. Large-cap growth stocks, (Russell 1000 Growth) returned 18.6%, modestly outpacing value, (Russell 1000 Value), which gained 15.9%. Small caps lagged, with the Russell 2000 finishing the year up 12.8%, as higher financing costs and uneven earnings continued to weigh on smaller companies.

 

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What broadening leadership and recovering earnings could mean for active investors in 2026.  What broadening leadership and recovering earnings could mean for active investors in 2026.US markets were led by large-cap
technology and communication services, with the S&P 500 up 17.9% and the Nasdaq up 21.1%, driven by ongoing investment in artificial intelligence (AI), cloud infrastructure and productivity-enhancing technologies.

Market leadership remained highly concentrated, with a relatively small group of large-cap technology stocks accounting for a disproportionate share of index returns. Large-cap growth stocks, (Russell 1000 Growth) returned 18.6%, modestly outpacing value, (Russell 1000 Value), which gained 15.9%. Small caps lagged, with the Russell 2000 finishing the year up 12.8%, as higher financing costs and uneven earnings continued to weigh on smaller companies.

 

Read more….

Authored by Luc Dumontier
Authored by Greg Clerkson
Authored by Kiko Vallarta