It was another green day for the S&P 500 (SPX), with the benchmark index closing at an all-time high for the third consecutive session. Let’s break down the sectors behind the performance.
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Consumer discretionary was the best-performing sector on Friday as the reopening of the Strait of Hormuz eased fears of inflation and elevated fuel costs. With lower oil prices, consumers have more disposable income, supporting demand for travel, housing, and discretionary goods companies.
Several consumer discretionary stocks led the sector’s gains, including:
- Royal Caribbean Cruises (RCL)
- Carvana (CVNA)
- Versigent (VGNT)
- Norwegian Cruise Line (NCLH)
- PulteGroup (PHM)
Today’s Worst-Performing Sector
Meanwhile, the energy sector faced the largest drawdown, with oil stocks hit especially hard. If traffic through Hormuz normalizes, oil companies could face declining margins and earnings expectations. However, volatility within the sector could resume if geopolitical tensions flare up again. Energy is still the top-performing sector on a year-to-date basis with a return of 26%.
Notable energy stocks trading lower include: