Energy ( XLE ) and Financials ( XLF ) were joined at the hip, finding themselves at the top of the sector list on Monday and Wednesday and at the bottom of the list on Friday. However the days spent at the top were enough to allow them to end the week in 1st and 2nd place.
However, Energy was the only sector that could keep gains to end the week in the positive.
Consumer Discretionary ( XLY ) and Technology ( XLK ) took a beating throughout the week as investors moved away from these sectors fearing the impact of and higher interest rates.
Utilities ( XLU ) is usually in play when investors are nervous. It showed up at the top of the list on Tuesday and Thursday, but ended the week at the bottom of the list.
The cyclical stocks Industrials ( XLI ) and Materials ( XLB ) outperformed the SPX for a second week. Along with Energy and Financials, these cyclical sectors were top performers for the whole month of February.
Crude Oil futures is at had its highest weekly close since 2018, so no surprise if there is some pullback. But expect demand / supply to keep prices high given the recovery of transportation sectors.
Copper is going to continue to be in high demand while facing supply issues. Tech infrastructure, consumer electronic devices, advanced EV and autonomous cars, all require the metal. Establishing new copper mines takes time and can't keep up with demand in the near term.
Aluminum prices will rise as consumer unleash record savings into the economy after consumer sentiment is returning to positive levels. Aluminum is required for consumer packaging, manufacturing many products and most importantly, BEER.