![]() ![]() Industrials, meanwhile, have their own pockets of strength, as spending on infrastructure and other projects is boosting shares of companies such as bellwether name Caterpillar (CAT), which has been rallying on a positive global demand outlook.Īs for ways to trade stocks in these relatively strong areas of the market, investors will need to keep a relatively short-term time horizon until the $SPX regains its 50-day moving average. Healthcare remains uplifted due to new drug approvals and demand for products that're resilient to any economic slowdown. Energy is the strongest, with many companies reporting robust Q3 results on the heels of elevated oil prices. The Energy, Healthcare, and Industrial sectors are all trading above key moving averages with healthy-looking charts. The declines here and elsewhere sent the $SPX back below its key 50-day moving average.ĭespite the damage to the areas most susceptible to a rising interest rate environment, there are several sectors of the market that are not only holding in but exhibiting bullish characteristics and have underlying stocks breaking out of sound bases to new highs. The Technology sector was the worst-performing, as the proposal of a more prolonged rate hike cycle with a higher peak rate pushed these growth stocks lower. Last week's negative response to Powell's hawkish comments hit mega-cap tech names the hardest, with Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN) down double digits for the week. Going into this week, the S&P 500 Index ($SPX) had bullishly broken back above its 50-day simple moving average in a move that capped an 8% gain for this broad-based index. It was a tough week for investors after Fed Chairman Jerome Powell put a halt to a two-week rally, which had been fueled by sharp gains in companies reporting Q3 earnings results ahead of lowered estimates. ![]()
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