COMMENTARY:
- The S&P 500’s weekly gain of 2.9% was fueled by positive economic data, upbeat corporate earnings, and easing trade concerns. The index is still clawing its way back towards reversing losses of late, year to date the is down 3.3%.
- Industrials gained the most this week up 4.3%. Carrier Global and Trane Technologies were up 19.1% and 14.8% respectively. GE Aerospace, the largest constituent was up 4.7%.
- The Tech sector benefited from ongoing business spending on digital transformation, automation, and next-generation connectivity, and gained 3.9% for the week. A few of the high-flyers this week included Arista Networks (+16.8), Seagate Technology (+12.5%) and Microsoft (11.1%).
- The only sector that was down for the period was Energy, it fell 50 basis points. Overall, a drop in oil process driven by a slight easing of geopolitical tensions in the Middle East. Exxon Mobile which makes up almost 24% of the sector fell 2.2%.
- Overall, only three sectors continue to underperform the broader S&P 500 index this calendar year. Consumer Discretionary is down 10.2% as US consumers may still be concerned how tariffs discussion get settled. Technology is down 6.8% as the Mag7 names show continuing volatility, and finally Energy is off 4.3% year to date.
ETF Tidbits:
Industrial ETFs Rally on Travel and Infrastructure Strength
- Industrial sector ETFs outperformed, driven by robust earnings from travel-related companies and renewed optimism on infrastructure spending.
Energy ETFs Slip as Oil Prices Retreat
- Energy ETFs underperformed due to a decline in oil prices, with easing geopolitical tensions and concerns about future demand weighing on the sector.
AI and Cloud Computing ETFs Attract Record Inflows”
- ETFs focused on artificial intelligence and cloud infrastructure attracted significant investor interest, following major capital expenditure announcements from leading tech firms.
Dividend and Value ETFs Remain Resilient Amid Market Volatility
- Investors continued to favor dividend and value-oriented ETFs as a hedge against ongoing market fluctuations and uncertainty about interest rates.
