The S&P 500 (SPX) finished in negative territory on Tuesday amid an inflation update from the Bureau of Labor Statistics (BLS) and surging rate hike odds.
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New trading tool for QQQ bullsLet’s break down the sectors behind the performance.
Today’s Top-Performing Sector
Healthcare was the top-performing sector on Tuesday as investors rotated into defensive stocks and out of growth names amid rising rate concerns, as higher rates reduce the present value of future earnings and weigh more heavily on growth stocks. Healthcare tends to hold up better in a higher-rate environment because its earnings are more stable and less sensitive to economic cycles.
Several healthcare stocks led the sector’s gains, including:
Today’s Worst-Performing Sector
Meanwhile, the consumer discretionary sector faced the largest drawdown. The Consumer Price Index (CPI) rose 3.8% annually in April, marking the highest level since 2023 amid soaring gas prices. With higher inflation, consumers may be inclined to pull back on unnecessary purchases, including travel, entertainment, and new vehicles.
Notable stocks trading lower include:

