The US economy did it again! Recession fears waned as the US economy surprised investors with a 2.4% growth rate for the period April-June. This continued flow of positive data has pushed markets up even further. Even with the Fed’s rate increases and the signal of potentially adding two more, the Fed will still decide their next steps based on the “totality of incoming data.” This has made the market price the possibility of lesser rate hikes and pushed stocks higher.
Now the next question is, which sectors are going to move next? With the tech sector constantly leading the S&P500 index higher, some might think that trading in tech might be too late. If you believe the same thing, your next question should be, which sector has started to recover? If we look at the QTD performance of each sector index in the S&P500, the current leader is the energy sector, with a -0.30% QTD performance - rapidly recovering against its -2.84% performance YTD.
