Heading into today’s open, the Nasdaq Composite (QQQ) closed yesterday at $709.24, up 0.30%, while the SPDR S&P 500 ETF Trust (SPY) finished at $765.16, a gain of 0.36%. With the 10-Year Treasury Yield at 4.80%, investors are pricing in continued scrutiny of August's stronger-than-expected jobs report and its implications for Federal Reserve policy.
This week we’re leaning into Energy (XLE), Healthcare/Defensive (XLV), and Gold (GLD). Energy is leading with +13.6% 1-month momentum, supported by being above its 50-day trend and benefiting from current macro conditions. We also highlight Healthcare/Defensive (+5.3% 1-mo momentum) as it’s above the 50-day trend, offering stability in a potentially volatile environment. Finally, Gold (GLD), with +3.4% 1-month momentum, is positioned as a debasement/safe haven asset amid ongoing economic uncertainty.
Last week's sectors saw varied performance. Technology (+2.8%), Consumer Discretionary (+0.7%) and Materials (-1.5%) delivered positive but modest returns; however, Materials underperformed the SPY benchmark.
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