Multi Asset chart of the week | Insight Investment

Chips mania: outperformance of the tech sector has helped to buoy global equity markets

Christopher Broadley, CFA, Portfolio Manager, said: “The MSCI World information technology sector has rallied more than 30% since the start of the Iran war. This has been driven, in part, by strong earnings reports from tech companies, as well as by expectations that the strong demand for chips and AI infrastructure will continue. The performance of the tech sector has clearly diverged from the performance of sectors such as consumer staples and healthcare, both of which have lost almost 10% since the start of the war. These sectors may likely be more negatively impacted by increased inflation pressures caused by the energy supply shock. While equity markets seem buoyant despite the Iran war, there is indeed significant dispersion between sectors and fears around the impact of inflation continue to be reflected in specific pockets of the market.”^†

Source: Insight Investment, Bloomberg as at 02 June 2026.