US SECTORS CALL: Tech Wrecked, Health Care & Staples Rally

The S&P 500 fell 2.0% this week, and Information Technology (MW) took the biggest hit. The sector fell 6.4%, the worst of the 11 sectors (chart). The iShares Semiconductor ETF (SOXX) fell 11.8%. Credit worries spread to AI infrastructure. CoreWeave fell 25% last week. Its worst day was Wednesday, when it sank 15% as its bond yields soared. It was the IT sector's second straight losing week. Industrials (OW) also fell for a second week. On a ytd basis, Energy is up 52.7%, the best of the 11 sectors. IT is second at 21.6% (chart).

Consumer Staples (UW) and Energy (OW) led the 11 sectors, each up 5.0%. Health Care (OW) rose 3.4%. Every defensive sector gained, with Utilities (MW) up 2.0% and Real Estate (UW) up 1.2%. Health Care and Staples rallied for different reasons. Earnings drove Health Care's gains. Staples' gains have been driven by its multiple.