Stocks are attempting a broad-based rebound today following the market’s worst one-day loss since October. Buying stepped in right at the opening bell after President Trump stated he would not use force to take Greenland. That said, he also noted that he expects immediate negotiations to begin.
The Greenland Shock Still Lingers
While the probability of the U.S. using force was always low, even the slim possibility was enough to weigh on markets yesterday. That uncertainty hasn’t completely disappeared, as the threat of lingering—and potentially higher—tariffs on several key European trade partners remains a reality.
As I mentioned yesterday, this is classic Trump strategy: go big, create leverage, and aim to land somewhere in the middle. For all parties involved, let’s hope that’s how this ultimately plays out once again.
Now, let’s shift away from the headlines and look at a couple of sectors that are simply ignoring the noise and breaking out to new highs.
Banks and Energy Step Into the Spotlight
The SPDR S&P Regional Bank ETF (KRE) is on pace to close at its highest level in several years.
SPDR S&P Regional Bank ETF (KRE)
One potential catalyst is the 10-year Treasury yield, which recently moved to its highest level since late August. Higher interest rates can be a tailwind for regional banks, which generate a significant portion of their profits from the spread between what they pay on deposits and what they earn on loans.
Meanwhile, the VanEck Oil Services ETF (OIH) is surging today to its best level in over a year. The energy sector is shaping up to be a leadership group in 2026.
VanEck Oil Services ETF (OIH)
Yesterday, I shared with subscribers of The McCall Letter my thoughts on new portfolios we’ll be adding this year—and Energy sits right at the top of that list. And to be clear, I’m talking about oil and gas, not renewables.
The Bottom Line
Energy demand is booming. That part of the story is well understood. What’s being ignored is the simple reality that oil and gas will still be essential to meeting that rising demand for years to come.
Over the last two years, regional banks and oil service stocks were pushed aside as capital flooded into anything and everything tied to AI. I believe AI will continue to expand in 2026—but it won’t be the only game in town. There are plenty of overlooked opportunities setting up right now.
For more details on our new 2026 portfolios, be sure to check out my flagship investment service, The McCall Letter.
Here’s to your future,
Matt McCall
Founder, NXT Wave Research
