July saw significant shifts in the US stock market. Several companies that had underperformed in the first half of the year emerged as leaders, while former favorites began losing ground, according to Bloomberg News.
The most notable change occurred in the energy sector. Previously one of the worst-performing sectors in the S&P 500, it has now become the market leader, agency analysts report. Meanwhile, the services sector has moved from leading to lagging in terms of returns.
Sameer Samana, an expert at Wells Fargo Investment Institute, believes current US economic developments are playing a key role in these observed changes. The analyst specifically cited dollar weakness, declining long rates, and interest rate uncertainty as contributing factors.
Furthermore, data from Bespoke Investment Group shows a similar trend. The Russell 1000 Index experienced capital rotation among numerous companies. The 20 worst-performing stocks gained an average of 5.4%, while the top 20 performers declined by 2.1%.