With the S&P 500 bouncing from support, investors wonder whether the recent stock decline is officially over. And if so, which stocks will lead the market higher? ðĪ
So far, leadership this year has been pretty thin, with the communication services, technology, and consumer discretionary sectors leading with double-digit gains. However, the rest of the sectors have seen lackluster performance, gaining single digits (and nearly half down for the year).
The last week has seen a bounce back in the entire market, but notably, the leadership sectors from earlier in the year are back in charge. Do they have enough juice left to push the S&P 500 and Nasdaq 100 indexes back to all-time highs? Or is the weakness in other sectors a bearish omen of further stock market weakness to come? ðŪ
That remains the key question investors are looking to answer as we head into year-end. With the S&P 500 and Nasdaq 100 both up double-digits, there are likely to be a lot of portfolio managers chasing performance to close the gap before they need to report year-end results. And if the market starts to rally again from here, the chase will officially be on. ð