Defensive sectors led the sector list during a week where employment data kept investors guessing on the Fed’s timeline for bond tapering.
Real Estate ( XLRE ) led the list throughout the week. The sector is benefiting from low interest rates while it also remains a good hedge against inflation . The Fed continues to put full employment ahead of inflation as the priority for interest rate hikes, so the sector will continue to perform if labor recovery slows.
The cyclical sectors ended the week lower with Financials ( XLF ) and Energy ( XLE ) sitting at the bottom of the sector list. The slowing labor market and missed PMI numbers this week showed some weakness in the economy.
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