The S&P/ASX 200 Index (ASX: XJO) has shown signs of life over the last week as investors have enjoyed some positive news.
Australia’s benchmark index is up almost 5% across the last 5 days of trading as headwinds have eased.
Firstly, on Friday last week the ASX 200 jumped as energy shares led the charge.
Then on Monday, investors continued piling into ASX 200 stocks after a breakthrough in the conflict between the United States and Iran.
Investors also seemed to take the RBA interest rate decision as a positive one as the benchmark index rose following the announcement.Â
While it’s been a volatile year in 2026 for investors, these headwinds may now be easing, which could help push the ASX 200 into a rally to end the year.
If that does eventuate, there are several key sectors that could rebound.
Technology shares
Despite already showing some signs of recovery, many ASX tech shares remain well below fair value according to brokers.
Many of these ASX 200 tech companies are yet to fully recover following AI replacement fears.
Several options that remain well below broker estimates include:
If interest rates are cut later this year, ASX tech shares like these could stand to benefit.
When interest rates fall, the future earnings of tech companies are discounted at a lower rate, which mechanically boosts their present valuations.
This effect is amplified for ASX tech stocks because they tend to be long-duration, growth-oriented businesses whose value is heavily weighted toward profits years down the line.
Lower rates also reduce borrowing costs for capital-hungry companies and ease pressure on Australian mortgage holders.
This can help free up household spending on software subscriptions and digital services.
Finally, with cash and bonds yielding less, investors rotate into growth equities. ASX tech tends to be a primary beneficiary of that shift.
Investors looking to diversify across the entire sector could also consider the Betashares S&P ASX Australian Technology ETF (ASX: ATEC).Â
The fund offers a simple way to back local innovation across several different tech names.
Aussie healthcare
ASX healthcare shares have been amongst the hardest hit in 2026.
The S&P/ASX 200 Health Care (ASX: XHJ) index remains down nearly 30% year to date.Â
It has been hit hard by a rotation away from the sector and into energy, defence and safe-haven assets over the last year.
While the tech sector may attract growth minded investors, many ASX healthcare shares could appeal to value investors.
Some of the largest ASX healthcare shares by market cap sit close to multi-year lows.
Those happy to play the long game could consider names such as:
Recent broker targets are anticipating as much as a 37% rise for these ASX 200 shares.
The post If the ASX 200 rallies in the back half of the year these sectors could be portfolio winners appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Bell has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended CSL, Cochlear, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.