The S&P 500 Remains In a Correction

The air has been coming out of the valuation multiples of the S&P 500 Growth MegaCap-8, which have dragged down the valuation multiples of the S&P 500 Communication Services, Consumer Discretionary, and Information Technology sectors. The MegaCap-8 were big outperformers during 2020 and 2021, the first two years of the pandemic.

So far this year—i.e., since January 3—the big outperformer among the 11 S&P 500 sectors has been Energy: Energy (40.6% ytd), Utilities (0.9), Consumer Staples (-0.6), Materials (-4.2), Health Care (-6.9), Industrials (-8.4), Financials (-11.7), Real Estate (-11.9), S&P 500 (-13.5), Information Technology (-19.6), Communication Services (-24.6), and Consumer Discretionary (-24.8). Today’s selloff was consistent with the ytd ranking of the sectors (see table below).