Heading into today’s open, the Nasdaq 100 (QQQ) closed yesterday at $716.92, up 0.14%, while the S&P 500 (SPY) finished at $762.60, down 0.07%. With the 10-Year Treasury Yield at 4.95% and VIX currently trading between 14.99-15.16, persistent inflation concerns continue to shape investor sentiment.
This week we're leaning into Energy (XLE). The sector posted a +1.4% one-month momentum and remains above its 50-day trend, benefitting from a macro environment favoring commodities as geopolitical risks persist. We anticipate continued strength if oil prices remain elevated – currently around $82/barrel Brent crude - supporting relative performance.
Last week’s sectors presented a mixed bag. Gold (GLD) led with a +1.49% return, fulfilling its safe-haven role amid uncertainty. Financials (XLF) lagged significantly at -2.01%, while Healthcare/Defensive (XLV) showed a slight decline of -0.14%.
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