In the first half of 2026, the technology sector led global stock market gains, with emerging markets and international tech stocks significantly outperforming their U.S. counterparts [1]. The MSCI index tracking large and mid-cap emerging markets technology stocks was the top performer, surging over 90% in the first six months of the year [1]. European tech stocks also posted strong results, with the relevant MSCI index up 44.8% and the pan-European Stoxx 600 Technology index rising 23.4% from January to June [1].
In contrast, U.S. tech stocks, while still posting notable gains, lagged behind. The MSCI U.S. tech index climbed 19.4%, the S&P 500 Information Technology index rose 19.4%, and the tech-heavy Nasdaq 100 index increased by 19.9% in the same period [1]. Broader U.S. market indexes also trailed their international peers: the S&P 500 gained 9.55%, the Nasdaq Composite added 12.79%, and the Dow Jones Industrial Average rose by 8.85% in the first half of the year [1].
Emerging markets broadly outperformed, with the MSCI Emerging Markets index up 24% [1]. South Korea's Kospi was a standout, soaring 101.1%, while Japan's Nikkei 225 advanced around 39% [1]. In Europe, the pan-European Stoxx 600 gained more than 8%, with notable performances from Spain's IBEX 35 (+12.5%), Portugal's PSI (+10.5%), and Italy's FTSE MIB (+14.7%) [1]. Other major European indexes posted more modest gains: London's FTSE 100 rose 5.7%, Germany's DAX gained about 1.9%, and France's CAC 40 increased just over 3% [1].
Despite a strong start, U.S. Big Tech stocks experienced a sharp sell-off at the end of June, but this did not prevent them from posting solid first-half gains [1]. However, the overall trend highlighted the relative underperformance of U.S. markets compared to emerging and select international markets, particularly in the technology sector [1].
CONCLUSION
The first half of 2026 saw emerging markets and international technology stocks outperform U.S. equities, with South Korea and emerging market tech leading global gains. While U.S. tech and major indexes posted solid returns, they lagged behind the robust performance seen in other regions, signaling a shift in market leadership.