Beyond the Mega-Caps: Equity Leadership Starts to Broaden

State Street Investment Management examines how the AI-led rally is evolving, with market leadership gradually diffusing across regions, sectors and factors as the cycle matures. 

• Sentiment-driven returns tied to mega-cap AI leaders remain positive but are flattening, while Europe, Japan and emerging markets have outperformed the U.S. over 2025.

• Sector leadership is widening beyond technology into financials, utilities and industrials, particularly firms embedded in AI infrastructure, data centers and supply chains.

• The shift suggests consolidation rather than breakdown, pointing to a more balanced, less narrative-driven phase of the bull market.

To understand how AI is reshaping markets in subtler, more distributed ways, the full report provides the deeper factor and regional evidence.