S&P 500 Index: Sector-by-Sector Review, Last Week’s Market Action
U.S. equities closed the week with a restrained recovery, as the S&P 500 index edged higher by 0.5%, marking the year’s most robust string of daily advances.
This rebound in equities helped mitigate the earlier week’s losses, which had been marred by a dramatic sell-off, the most intense trading session since 2022.
Despite initial market upheaval and looming concerns about a potential economic downturn, recent corporate earnings reports have offered glimpses into enduring trends, notably a dip in consumer demand.
The week’s sectoral performance was mixed, with consumer discretionary and materials sectors faltering, while information technology and communication services sectors surpassed broader market expectations.
The materials sector emerged as the weakest performer, shedding 1.7%, while the energy and industrials sectors each posted gains of 1.2%.
The technology sector witnessed varied outcomes, with semiconductor stocks marginally retreating. Noteworthy declines were observed in shares of Nvidia Corp (NASDAQ), Intel Corp (NASDAQ), and Advanced Micro Devices (NASDAQ) Inc, while Broadcom (NASDAQ) Inc, Lam Research Corp (NASDAQ), and Micron Technology Inc (NASDAQ) registered gains.
Conversely, the software subsector saw an uptick, buoyed by robust performances from Microsoft Corp (NASDAQ), Oracle Corp (NYSE), and Palo Alto Networks (NASDAQ) Inc. Tech hardware also advanced, spearheaded by gains in Apple Inc (NASDAQ), NetApp Inc (NASDAQ), and HP Inc (NYSE).
Within the communication services sector, media and entertainment conglomerates like Meta Platforms Inc (NASDAQ), Alphabet (NASDAQ) Inc, and Netflix Inc (NASDAQ) fueled a 1.0% sectoral ascent. Telecommunication services also recorded gains, with Verizon Communications Inc (NYSE), AT&T Inc (NYSE), and T-Mobile US (NASDAQ) Inc achieving new milestones. Healthcare equities mirrored the broader market’s performance, with the pharmaceuticals subsector standing out as Eli Lilly (NYSE) shares surged following a stellar earnings report. However, the biotechnology and life sciences segments experienced declines, with Gilead Sciences Inc (NASDAQ), Amgen Inc (NASDAQ), and AbbVie Inc (NYSE) facing headwinds.
The financials sector marginally outpaced the broader market, with advances in banking, insurance, and financial services. JPMorgan Chase & Co (NYSE), Progressive Corp (NYSE), and American Express Co (NYSE) were among the prominent gainers, while Charles Schwab Corp (NYSE) and Global Payments Inc (NYSE) posted losses.
The consumer discretionary sector aligned with the broader market, with the automobiles and durables & apparel subsectors registering modest gains. Tesla Inc (NASDAQ) and General Motors Co (NYSE) were among the notable risers. The real estate sector also saw gains in REITs, with Simon Property Group Inc (NYSE) and Welltower Inc (NYSE) reaching new peaks.
Energy stocks mostly ascended following a 1% rise in WTI crude oil prices. While the oil, gas, and consumable fuels subsector experienced some gains, energy equipment and services encountered declines. Utilities underperformed relative to the broader market, with electric utilities and multi-utilities showing mixed results.
Industrial stocks remained largely static, with transportation suffering losses and aerospace & defense advancing. The materials sector underperformed, with chemicals making slight gains, while construction materials, metals & mining, and containers & packaging experienced declines.