News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/0lYdB9y82G
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.01% 🇨🇭CHF: -0.03% 🇬🇧GBP: -0.04% 🇯🇵JPY: -0.11% 🇦🇺AUD: -0.19% 🇳🇿NZD: -0.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/VAKvRq8IX7
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.33% US 500: 0.14% Wall Street: 0.10% France 40: -0.25% Germany 30: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/dZyZx2pzQy
  • The Dollar is proving more responsive to fundamentals than risk assets like the S&P 500. Will Friday NFPs push $EURUSD above the midpoint of its historical range? My article and video for Friday: https://www.dailyfx.com/forex/video/daily_news_report/2020/12/04/EURUSD-Faces-Its-Historical-Range-Midpoint-as-Resistance-with-Dollar-Sliding-Into-NFPs.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/98OsWsb7ik
  • RBI sees FY21 GDP at -7.5% versus -9.5% prior -BBG
  • RBI's Das: RBI stands ready for more liquidity access measures, RBI taking measures for dampening volatility -BBG
  • @ZabelinDimitri https://t.co/G0vkDoZnAy
  • RBI's Das: Recovery signs are far from broad-based, MPC will monitor all threats to price stability. Near term financial risks contained -BBG
  • RBI Governor Das: To continue with accommodative stance this year and next, inflation likely to remain elevated -BBG
  • 🇮🇳 RBI Interest Rate Decision Actual: 4% Expected: 4% Previous: 4% https://www.dailyfx.com/economic-calendar#2020-12-04
S&P 500 Sector Performances Highlight Prevailing Headwinds

S&P 500 Sector Performances Highlight Prevailing Headwinds

2019-05-30 21:00:00
Peter Hanks, Analyst
Share:

S&P 500 Sector Performances:

S&P 500 Sector Performances Highlight Prevailing Headwinds

As the S&P 500 and Dow Jones tread lower on the back of renewed concerns regarding trade wars and global growth, investors have begun to seek exposure in sectors that can withstand a continuation of May’s price action. With one session remaining, May looks poised to end the month -5.05% lower – marking the first down month in 2019 thus far. Across a broader timeframe, May is on pace to post the third worst monthly return since the beginning of 2016, behind only October and December 2018.

S&P 500 sector performances

On a sector basis, conventional market wisdom has resulted in the more-defensive sectors heralding strength at the end of May. Utilities, healthcare and consumer staples have been relatively unfazed by the recent market turbulence – suggesting investors are digging in their heels for continued pressure. The three sectors are typically viewed as defensive because of their inelasticity and consistent returns. Specifically, utilities have enjoyed the prospect of waning yields elsewhere and a prolonged low interest rate environment – making their consistently high dividend relatively attractive.

On the other hand, the energy, industrials and technology sectors are some of the Index’s biggest laggards. Weakness in the energy industry is partially attributable to waning demand forecasts as global growth slips -a headwind that also weighs on crude oil prices. Industrials share a similar position as economic forecasts project lower output and fewer purchases. The industry has also been plagued by a single-stock’s weakness, as Boeing fumbles for a fix to its 737 Max issues.

Finally, the high-flying tech sector has suffered pain of its own. Responsible for much of this bull run’s return, the tech industry has been hit from all angles this month. As valuations soar, investors have begun to shy away from the riskier edge of the industry, passing up on stocks with uncertain cash flows like Tesla and Uber. Similarly, a licensing ban on Huawei has thrust demand into question for many suppliers of high-tech components like semiconductors. In the month of May alone, the SOX semiconductor ETF has shed -15.45%. In the year-to-date, it is up just under 13%.

Although US equity markets were given a brief reprieve in Thursday trading, a crucial break beneath 2,800 will continue to weigh on the market’s outlook. While the bearish arguments are mounting, there are some bright spots heading into June.

On June 28 to 29, world leaders will meet at the G20 Summit in Osaka Japan. The event will provide President Trump and President Xi Jinping the opportunity to meet and discuss trade, along with nations that face potential auto tariffs. Any indication that the heads of state will meet to specifically discuss the trade war could rejuvenate the depleted optimism of the stock market. That said, the Index will hope to tread water in the interim, but hope is a terrible trading strategy.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more: Trade Wars and Tariffs Have Put the US Auto Industry in Peril

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES