Name: Markets seeing broad based rally in U.S. and abroad, says Truist
Uploaded: 2026-01-17T13:53:38.255Z
Duration: 3 min 4 s
Description: Truist analysts report that markets are experiencing a broad-based rally, with gains seen across U.S. sectors such as industrials and small caps, while technology stocks remain flat.

Truist analysts report that markets are experiencing a broad-based rally, with gains seen across U.S. sectors such as industrials and small caps, while technology stocks remain flat.

Truist analysts report that markets are experiencing a broad-based rally, with gains seen across U.S. sectors such as industrials and small caps, while technology stocks remain flat. This trend is mirrored globally, as all countries tracked by Truist are above their 200-day moving averages, indicating widespread market strength.

Despite the recent sharp rally in staples and continued optimism in tech, investor sentiment is described as optimistic but not euphoric. Truist notes that while their portfolio remains overweight in tech and communication services, they have also upgraded industrials, energy, and materials. A potential risk to the current market rally is the 10-year treasury yield approaching 4.25%, which is not widely anticipated in forecasts.

Markets seeing broad based rally in U.S. and abroad, says Truist

Keith talk a little bit about the start of this year and what it's told you about the character of this market. Yeah well great to be with you Mike. It's interesting we're talking about a broadening trade within the overall market but then within tech you're actually seeing more diversion. So you know a lot of difference from last year overall. But I do think what we're seeing when we look at you know industrials up 7 percent small caps up 7 percent for the year tech kind of flat. I think we have one rotation. January tends to be a mean reversion month. And there's some you know obviously optimism about this economic uptick. But we're also just seeing things that were being up like staples which in theory shouldn't really benefit that much from an economic uptick. Also up. So it's really a broad based rally both in the U.S. and Mike we follow over for 40 countries globally. And all of those countries are above the 200 day moving average. So that just speaks to the breadth of this global bull market. Yeah there's no doubt it's a globally synchronous move at this point. But you mentioned the staples rally which was very sharp and nobody was positioned for it really. And I wonder if it was so sharp just because you have this wild churn in the market. You have these you know clock players or whoever out there. It's just getting caught off sides repeatedly. Wonder how we can find any signal in that noise. Yeah. Well one thing we looked at coming into this year staples I believe on a three year basis has underperformed by more than 60 percent relative to the S&P. That's one of the most dramatic underperformance we've seen in history. So all you need when the rubber band is that stretch is a little bit of good news. I'd also say hey Mike the top holding in the staples sector is Wal-Mart. They actually benefited from some of the A.I. trade too in some ways. Yes. Wal-Mart and Costco is in there as well. So you you guys are still overweight tech and communication services. Does that mean that you expect kind of the former leadership to remain intact to reassert itself. Those are legacy positions. We're still staying there. We did add industrials. We upgraded energy materials as well back in December. But I will say Mike the I'm actually happy to see some see some of the optimism come out of tech because the earnings momentum for tech is still positive. So to your point we still are positive on tech long term. I don't know how quickly it reasserts itself but I think it's hard to be negative on tech. I think in the interim we still like having a position in both. I think in the near term that broadening theme probably has a bit more to go. Yeah there's no doubt that. I mean it's remarkable that four months ago the whole talk was a bubble and then that whole trade is kind of deflated to date. What about the general state of investor sentiment. I was talking a little bit about things looking a little bit heady. Yeah I would agree with that. We have one index that looks at newsletter writers and that's showing the most equity allocation we've seen in some time. I think so sentiment I would say on the margin is somewhat optimistic but not euphoric. The one thing I'd pay attention to maybe a risk is that 10 year treasury is now pressing against 425. We start seeing that move. That's not pestled into most people's forecast. So that's what I would be watching more than anything as a risk to this market right now.

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