Here's the best-performing stock sector of 2026

Core Insights - The energy sector has emerged as the top performer in the stock market for 2026, with a year-to-date gain of 12.9% as of February 2 [1] Group 1: Energy Sector Performance - The energy sector includes companies involved in oil, gas, and consumable fuels, as well as related equipment and services [2] - The outperformance of the energy sector is driven by surging electricity demand from AI data centers, leading to U.S. power consumption growth at five times the pace of the past decade [4] - Clean energy is recovering, shifting towards demand-led growth, with renewables attracting capital and outperforming traditional fuel segments [5] Group 2: Other Sector Performance - Basic materials have shown an 11.58% rise, supported by industrial recovery, while industrials gained 7.59% and consumer defensive stocks advanced 7.34% [3] - Communication services rose 3.65%, real estate 2.77%, and utilities 2.76%, while consumer cyclical edged up 1.25% and healthcare at 0.58% [3] - Financials dipped 0.19% and technology declined 0.8%, reflecting broader market adjustments [3] Group 3: Oil and Gas Sector Dynamics - In the oil and gas sector, refiners and midstream operators have remained resilient due to operational efficiency and long-term contracts despite crude price volatility [6] - Expectations of price recovery driven by tightening low-cost supply have improved earnings outlooks for the sector [6] - Policy support for large-scale renewables and domestic production, including LNG exports, has further stabilized the sector and boosted activity [6]