Heading into today’s open, the S&P 500 stands at 765.96, down -0.40%. The Nasdaq Composite (QQQ) is trading at $718.36, also lower by -0.35%, while the VIX currently sits at 15.67 – suggesting relatively contained volatility despite yesterday’s downside; this coincides with a 10-Year Treasury Yield of 4.81%.
This week we're leaning into Energy (XLE), Financials (XLF), and Semiconductors (SMH). XLE stands out with +7.6% one-month momentum, trading above its 50-day trend and benefiting from a macro environment favoring commodities. We also highlight XLF, despite -0.9% monthly momentum, as it remains above the 50-day, also supported by current macroeconomic conditions. Finally, SMH shows positive +0.8% one-month momentum and holds its position above the 50-day trendline.
Last week's sectors presented a mixed bag. Gold (GLD) eked out a gain of +0.35%, while Tech (QQQ) saw a slight dip of -0.13%. Healthcare/Defensive (XLV) lagged significantly, falling -3.72%.
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