Third Quarter 2026 Active Equity Allocation Report

Anna Piralkova, Claire Xu

Fidelity's quarterly active equity allocation analysis.

Key Takeaways

• Across most global markets, monthly return dispersion rose and stock-level return correlation decreased in the second quarter of 2026.
• All the major U.S. indexes we track for this analysis reflected more positive than negative active equity indicators in Q2.
• The Russell 2000 showed the greatest number of positive indicators overall, as the equity rally broadened beyond long-dominant technology mega cap stocks to include more small caps.
• U.S. large cap stocks showed more positive than negative indicators overall, but with significant differentiation by sector and theme.
• Conversely, the MSCI EAFE and MSCI EM Indexes reported mixed signals overall amid growing market concentration, especially among MSCI EM components.

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