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Weakening#72 of 115 by 1M spread

Technology sector vs S&P 500 (XLK): is it outperforming?

Over the past month, XLK has underperformed the S&P 500 by 3.0 points. Here is where that puts it in the sector rotation — updated daily.

1M spread vs SPY
−3.0 pts
Quadrant
Weakening
Momentum
Weakening
RS health
Broken
Holdings P/E
60.9×

Where XLK sits on the rotation map

Technology highlighted against the 11 broad S&P 500 sectors. Vertical: 1-month spread vs the S&P 500. Horizontal: the longer, time-shifted window — the methodology explains the math.

XLK vs SPY: head-to-head returns

XLK (technology) and SPY (the S&P 500) side by side over every window Zensei tracks. The spread is the difference — positive means XLK won that window.

Window
XLK
SPY
Spread
1 week−1.2%−0.3%−1.0 pts
2 weeks+0.1%+2.8%−2.7 pts
1 month−1.8%+1.2%−3.0 pts
3 months+24.6%+9.5%+15.2 pts
6 months+24.1%+8.5%+15.5 pts
1 year+42.4%+21.4%+21.0 pts

Data as of 2026-07-13 · computed from daily adjusted closes · how we measure

The read

Technology (XLK) is losing its lead. It built a 18.8-point advantage over the S&P 500 across the longer, time-shifted window, but over the past month it has slipped 3.0 points behind the market — the weakening quadrant of the rotation map. Ranked by one-month spread, it currently stands #72 of the 115 groups Zensei tracks.

On the shorter tape, XLK's momentum is weakening: the intraday trend that carried the move is cooling across the shorter windows. XLK's relative-strength line has broken below its long-term average — the long-term outperformance trend is no longer intact. Both signals point the same direction here: the market is not rewarding this group on either horizon.

The exposure comes via Technology Select Sector SPDR, whose 74 tracked holdings are led by NVIDIA CORP, APPLE INC and MICROSOFT CORP. Weighted by portfolio, the fund's holdings trade at roughly 60.9× earnings and 15.5× sales. The thing to watch from here is whether this is a pause or a handoff: weakening groups sometimes reset and reclaim leadership, but a deepening one-month deficit usually means rotation has moved on.

What's inside XLK

Top 10 of 74 tracked holdings, by portfolio weight.

Holding
Weight
1M
NVDANVIDIA CORP
13.2%−0.8%
AAPLAPPLE INC
12.7%+9.0%
MSFTMICROSOFT CORP
8.0%+0.1%
AVGOBROADCOM INC
4.9%+0.7%
AMDADVANCED MICRO DEVICES INC
4.5%+4.5%
MUMICRON TECHNOLOGY INC
4.0%−4.5%
INTCINTEL CORP
3.5%−17.2%
CSCOCISCO SYSTEMS INC
3.0%−1.2%
AMATAPPLIED MATERIALS INC
3.0%+1.4%
LRCXLAM RESEARCH CORP
2.8%−10.0%
64 more holdings — each measured against the sector, with momentum and relative strengthSee the full breakdown

Technology vs the market — common questions

Is technology outperforming the S&P 500?

Right now, no: over the past month XLK has underperformed the S&P 500 by 3.0 points. This page updates daily, so the answer reflects current market data rather than a dated article.

What is XLK?

XLK is Technology Select Sector SPDR, the fund Zensei uses to measure the technology group against the S&P 500 benchmark (SPY).

Which stocks are in XLK?

XLK's largest tracked positions are NVIDIA CORP, APPLE INC, MICROSOFT CORP, BROADCOM INC, ADVANCED MICRO DEVICES INC — 74 holdings in total. The full list, with each stock measured against the group, is available with a free Zensei account.

What quadrant is technology in right now?

As of the latest daily data, technology is in the weakening quadrant — still ahead over the longer window, but behind the market over the past month. The quadrant rules are documented on the Zensei methodology page.

Related sectors

Track technology against the whole market

Zensei Edge maps 100+ sectors and themes against the S&P 500 — with the stocks inside each one, rotation history and alerts when leadership changes hands.