March 31 – The information technology sector of the S&P 500 is on track to become the worst-performing sector in the first quarter of 2026 if current market trends persist. At Monday’s close, the sector has dropped by 12.94% this quarter and is down 7.7% in March, set to experience its largest monthly decline in a year. In February, software sector stocks were hit by growing concerns about artificial intelligence disrupting existing business models. Investor concern about overvalued companies related to artificial intelligence has contributed to the sector’s underperformance. Rising yields due to inflation concerns related to the war in Iran in March have also exacerbated the impact. The S&P 500 software and services index has dropped by 25.8% year-to-date in the first quarter, with software stocks such as Workday, Applovin, and Intuit set to become the worst performers in the sector, with declines of around 35-40%. However, memory stocks including Sandisk, Western Digital, and Seagate Technology are expected to be the top performers in the technology sector in the first quarter.
