US SECTORS: Rotations and Corrections

The S&P 500 is 2.0% below its June 2 all-time high. It has been hovering around 7,500 since May 14. Beneath that calm, momentum stocks have been hard hit. The semiconductor index (SOXX) is down 20.3% from its June 22 peak. The Roundhill Memory ETF (DRAM), which started trading on April 2 around $28 and soared 208% to $80.7 on June 22, is down 35% since then.

These developments have all weighed on the S&P 500 Information Technology sector, which we downgraded to market weight on December 7, 2025. Meanwhile, Financials and Health Care, which we are overweight, have held up well. Investment banking is booming. Biotech is performing very well.