Feb. 11 at 8:55 PM
Energy stocks are up about 20% in 2026, sharply outperforming the S&P 500 , which has gained roughly 2%. The rally has been driven by geopolitical tensions, including U.S. military involvement in Venezuela, and by a broader rotation out of volatile tech stocks into hard assets. As the AI trade cools, investors are turning to energy, one of the least correlated sectors to the broader market.
That shift has helped lift oil prices by about
$6 per barrel this year, with the international benchmark near
$69. Despite the surge, analysts expect flat earnings growth for the sector in 2026, making it the only S&P sector without projected profit expansion.
Major players such as Exxon Mobil and Chevron have led the gains, boosting the Energy Select Sector SPDR , while smaller names have pushed the Invesco S&P SmallCap Energy ETF up more than 20%.
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