Top performing U.S. S&P 500 sectors as reported by Koyfin for the Third Quarter of 2023 include Energy (12.2%), Communications (1.0%) and Financials (-1.2%). Laggards for the Third Quarter include Utilities (-9.2%), Real Estate (-8.9%) and Consumer Staples (-6.6%).
Continued worry of additional rate hikes hurt income oriented sectors, like Utilities, Real Estate and Consumer Staples. The direction of stocks is driven largely by Federal Reserve expectations. This puts the market in the interesting position, where good economic news is bad for the market and bad economic news is good. If the economy is strong the Federal Reserve is more likely to keep rates higher longer and possibly raise rates some more.
Oil prices rose in the Third Quarter as conflict continues in Ukraine, driving strong returns in Energy stocks.