Equities, U.S. sectors: strong rebound in May for tech and consumer discretionary
In May, U.S. equities resumed their upward trend, supported by easing trade tensions and still-positive macroeconomic data. Among sectors, technology and consumer discretionary stocks stood out.
The first thing that stands out when looking at the Heat Map above is the predominance of green shades in May, signaling a strong rebound compared to the previous two months. The second takeaway from the chart is that the sectors showing the strongest recovery have been clearly pro-cyclical ones, such as industrials and consumer discretionary.
So far, May has particularly favored the technology sector, which is posting its best performance since last September. The energy sector has also returned to positive territory, while pharmaceuticals are registering their third consecutive month of decline.
Focusing on the ratio between consumer discretionary and consumer staples—a proxy for U.S. consumer sentiment—we observe a rebound in the indicator starting from the end of April, along with a significant bullish crossover between the 50-day and 200-day moving averages.
We’re still far from the levels seen at the beginning of 2025, but the sudden shift in market sentiment is clearly visible. Whether this shift will last, however, is another key question—one that remains difficult to answer at this stage.
