Hi Everyone,
The main sectors closed the choppy but active session mixed. However, compared to last week’s craziness, the market was much more stable, as the Volatility Index (VIX, -4.2%) finished lower for the fourth straight day. The energy sector added nearly 3%, while materials, utilities, consumer staples, and healthcare edged higher, with industrials holding up relatively well. Consumer discretionaries, tech, and communication services lost the most ground, while real estate and financials performed roughly in line with the broader market.
Traders said that despite today’s mixed session, there are reasons to be optimistic about the stock market. As one trader explained, “Stocks held on to most of their lofty gains from Friday, and while bulls still have their work cut out for them following seven negative weeks in a row, a memorable short-covering event could easily be in the cards here.”
The tech sector and the Nasdaq were all the rage on the Street throughout last week, as the giants of the sector hit new lows and pulled the broader market lower, but the energy sector clearly took center stage today, especially later in the session. The price of oil hit a nearly two-month high while U.S. gasoline prices continued to surge to fresh record highs, which could mean that inflationary pressure will remain elevated in the coming months. The popular XLE ETF (XLE, +2.7%) hit its highest level since late-2014 thanks to the rally in commodities, and, from a year-to-date perspective, the energy sector continues to lead the pack by roughly a 45% margin.
“I believe every human has a finite number of heartbeats. I don’t intend to waste any of mine.”
Neil Armstrong
As always, have a great evening and stay tuned!!
