Information Technology outperformed this week, gaining +3.1%, while Consumer Staples registered the largest decline at -2.3%. The weekly dispersion suggests a risk-on tilt despite falling oil prices and concurrent gains in long duration Treasuries. This dynamic points to sector selection driving returns rather than broad market directionality, with growth areas outperforming defensive postures.
Information Technology led the market this week with a +3.1% gain, building on a strong year-to-date performance of +28.7%. The continued advance suggests investor preference for growth stocks even amid broader macroeconomic uncertainty; relative strength in tech may be absorbing some risk appetite.
Consumer Staples was the weakest performer, declining -2.3% this week despite being up +10.0% year-to-date. This underperformance could reflect profit taking in a traditionally defensive sector as investors shift toward cyclical areas of the market. The move also follows a period where staples have largely traded sideways, lacking significant catalysts for further gains.
Energy remains the year-to-date leader with a +37.3% return, although it experienced a -0.7% decline this week coinciding with a -3.7% drop in oil prices (USO). While weekly performance softened, the substantial YTD gain highlights the sector’s benefit from earlier commodity price strength and continued demand throughout much of 2026. The current pullback may represent a temporary consolidation after an extended run.
| Sector | Week | YTD | |
|---|---|---|---|
| 1 | Information Technology (XLK) | +3.1% | +28.7% |
| 2 | Communication Services (XLC) | +0.6% | -3.3% |
| 3 | Financials (XLF) | -0.2% | +5.8% |
| 4 | Energy (XLE) | -0.7% | +37.3% |
| 5 | Materials (XLB) | -0.7% | +15.3% |
| 6 | Consumer Discretionary (XLY) | -0.9% | -1.0% |
| 7 | Industrials (XLI) | -1.0% | +12.1% |
| 8 | Utilities (XLU) | -1.1% | -1.0% |
| 9 | Real Estate (XLRE) | -1.9% | +10.2% |
| 10 | Health Care (XLV) | -2.0% | +10.1% |
| 11 | Consumer Staples (XLP) | -2.3% | +10.0% |
Our sector-rotation model is leaning into Gold, Energy, Healthcare/Defensive — the sectors clearing our momentum, above-trend, and relative-strength filters. We rotate weekly and hold no view on the sectors we are not in.