S&P500 Sectors: Tech Stocks Lose Momentum
The summer rally that characterized the S&P500 saw a gradual rotation from technology and industrial stocks toward commodities and pharmaceuticals, while the energy and financial sectors remained stable; consumer stocks performed well.
In the usual S&P500 sector heatmap, one can first notice the predominance of green shades that marked the summer period. In August, only two sectors ended in negative territory.
The most convincing performances in August came from the pharmaceutical, commodities, and consumer discretionary sectors. Energy, communications, and financials also delivered solid results.
In terms of rotation, two interesting movements can be observed. Technology stocks lost momentum and ended August essentially flat. The industrial sector shared the same fate. On the other hand, commodities and pharmaceuticals accelerated. The rotation does not appear to be driven so much by a reduction in risk-on sentiment, at least for now, but rather by investors seeking growth opportunities outside of the hot themes of recent months.
