While several retail favorites and high-growth technology stocks are struggling to find holiday cheer this year, the story in the healthcare sector couldn't be more different. Amid fears surrounding mega-cap technology stocks like NVIDIA (NASDAQ: NVDA) and uncertainty in AI capital expenditures, investor capital has been flowing into the defensive yet growth-oriented healthcare space.
Year-to-date (YTD), the Health Care Select Sector SPDR Fund (NYSEARCA: XLV) has broken out of its slumber, posting a solid 14.5% gain. With interest rates stabilizing and a rate cut potentially coming in December, strong Q3 earnings across the sector suggest that the healthcare growth cycle is still intact.
