Of all the growth sectors to underperform last week, tech was the one that buckled the least. Loan defaults are likely to become a bigger issue in the near future, but banks appear to be emerging from its black cloud. Despite last week’s pivot towards defensive issues, small-caps continue staging a modest comeback. Last week’s outperformance from utilities was probably the sector’s biggest move since the banking crisis earlier this year.

While the tech rally hasn’t fizzled out, it continues to show signs of tiring out. We’re still seeing investors spreading their bets out beyond just the growth sectors that have been leading. If a hike later this month truly is the last one of this cycle, it could open up Treasuries to behave more “freely” and act like a counter to equities. The downward pressure on the dollar is a condition that’s likely to persist for several more months.

The consumer discretionary sector has replaced tech as the most consistent outperformer in this market. The desire of investors to keep pushing valuations higher and higher on tech seems to have worn out. Higher interest rates are continuing to draw investors away from gold, but lumber looks like it’s finding its footing again.