Tech stocks such as Palantir Technologies AppLovin and Microsoft weighed on major indexes Friday, the first day of trading in the new year, while shares of energy, materials and utilities marched higher. While this week’s trading action was relatively light, and interrupted by the New Year’s Day holiday, investors nevertheless continued to rotate out of many stocks that powered 2025’s gains. Traders have passed on some of the biggest names in artificial intelligence, in favor of more defensive or diversified picks in a wider array of industries.