Defensive issues have started to outperform lately as investors rotate out of mega-caps and growth stocks. Cyclicals have begun showing signs of life, while tech looks poised to rebound following its sharp correction.
The tech and consumer discretionary sectors remain the firm leaders, while cyclicals are showing improvement. Treasuries remain volatile in the current market and international stocks continue to underperform.
There’s been almost no stopping this sector for nearly two solid years as tech leadership remains firm regardless of the market cycle. This group wraps up August with a nearly 12% gain, topping all other S&P sectors during the month.