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Commentary

6 Charts on the Stock Market Rotation

Investors are shifting out of pricey sectors and styles and into areas of the market that have been less richly valued.

While the headlines have focused on the jobs and inflation data, the big story in the stock market continues to be the "rotation." Investors are shifting out of pricey sectors and styles and into areas of the market that have been less richly valued.

These trends have been playing since the start of the third quarter of 2020 and, even as the stock market hit an air pocket last week, continued to dominate the market. Energy is the top-performing sector, returning more than 10% since the most recent peak in the Morningstar U.S. Market Index on April 26. The basic materials and financial services sectors saw positive returns, while the rest of the market saw losses. Technology saw the greatest loss at nearly 9% since the most recent market peak.