Energy ( XLE ) topped the sector list this week after the OPEC Monthly Report on Monday projected that demand for oil would exceed pre-pandemic levels by next year. The sector also got a boost from Crude Oil Inventories data released on Wednesday that showed much higher demand than expected.
All sectors declined this week as the S&P 500 pulled back from all-time highs. Consumer Discretionary ( XLY ) was poised to end the week with gains before losing those gains in Friday afternoon selling.
Defensive sectors led the sector list during a week where employment data kept investors guessing on the Fed’s timeline for bond tapering.
A mix of growth and cyclical sectors topped the list this week. Defensive s all sectors declined for the week after topping the sector list last week.
Defensive sectors led throughout this week as the Market absorbed data that showed a slowing economic recovery and meeting minutes from the Fed that indicated tapering could begin this year.
Materials ( XLB ) led the sector list for the week, getting a massive boost on Tuesday and Wednesday after the Infrastructure bill passed the Senate. Industrials ( XLI ) also got a boost from the bill.
Several sectors rallied into the lead throughout the week, but Financials ( XLF ) came from behind to end the week as the top sector.
Materials ( XLB ) was the top sector of the week as manufacturing and core durable goods data showed increase demand and was confirmed in consumer spending numbers. The growth in the sector was matched by increased prices in metal commodities required to support economic expansion.
Utilities ( XLU ) dropped to the bottom of the sector list after leading in the previous week. It was all about Growth stocks this week as investors put off fears of the economy and looked forward to record earnings reports from big tech.
The sectors ended the week in a very character than they started the week. None of the leading sectors early in the week were leading by the end of the week.