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The Sectors Leading the Market Into the Final Days of May

The Motley Fool reviews sector performance into the final days of May, showing a market led by energy and a rebounding tech sector. By end-March the S&P 500 was down 4.6% YTD, with energy (XLE) the clear outperformer; XLE rose sharply (31.9% by March 31 and ~34.5% by May). Tech has recovered to become the second-best sector (XLK up 22.3% YTD) and has led May gains (tech +10.6% in May), outpacing the S&P 500’s ~2.9% gain for the month. Utilities (XLU) are lagging, sliding 4.9% since early May amid concerns about AI data-center strains on electric grids and water supplies. The piece is a sector performance comparison, highlighting rotation from laggards to leaders and potential summer risks for utilities, without making definitive buy/sell calls for the S&P 500.

Category

US 500

Sentiment

Neutral

Event

Performance comparison

Reading time

1 min