June Marked a Shift Beyond the AI Trade

Janus Henderson argues that June marked an important transition in global markets, with leadership broadening beyond mega-cap technology as investors rotated toward cyclical sectors, value stocks and European equities.

• While semiconductor companies continued to benefit from AI demand, hyperscalers came under pressure as investors questioned the returns on massive AI-related capital spending, creating a growing divergence within the AI trade.
• Europe outperformed the U.S. and Asia as lower oil prices eased inflation concerns, while financials, industrials, healthcare and small-cap stocks gained leadership after months of technology dominance.
• The report also highlights June as a record month for equity issuance, led by the historic SpaceX IPO, reinforcing that capital markets remain highly supportive despite increased market volatility.

Read the full monthly market update for a comprehensive overview of June's major macro developments, sector rotations and investment themes.