The energy sector is taking the bull market lead from tech. Here's one way to play it
Marathon has climbed inside a well-defined channel since its 2020 low
TL;DR
- Energy sector stocks are leading the market in 2026, with the Energy Select Sector SPDR Fund (XLE) up 53.3% year-to-date.
- Higher inflation and bond yields are creating headwinds for technology stocks while supporting energy.
- The diesel crack spread, a measure of refiner profitability, has seen a significant increase.
- Marathon Petroleum (MPC) is highlighted as a key investment due to its strong performance and position in the refining sector.
- The article suggests that energy stocks are trading on fundamental factors beyond just inflation and geopolitical tensions.