Sector Performance Via Market Cap. (2020-2021 and YTD-8/12/22)

August 17, 2022
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View from the Observation Deck

1. All three S&P stock indices in the table above recently shifted from bear market territory to down less than 10.00% year-to-date through 8/12/22.

2. A correction is usually defined as a 10.00% to 19.99% decline in the price of a security or index from its most recent peak. A bear market is defined as a 20.00% or greater decline in the price of a security or index.

3. As of the close on 8/12/22, the S&P 500 Index stood 10.77% below its all-time closing high, according to Bloomberg. The S&P MidCap 400 and S&P SmallCap 600 Indices stood 10.16% and 12.16% below their respective all-time highs.

4. The three major indices featured in the table comprise the S&P Composite 1500 Index, which represents approximately 90% of total U.S. equity market capitalization (cap), according to S&P Dow Jones Indices.

5. Large-cap stocks performed significantly better than their mid- and small-cap counterparts from 2020-2021 (black columns). YTD through 8/12/22, large-caps lagged the performance of mid-caps and small-caps (see table above). From 12/31/19 through 8/12/22 (period covered in the table that captures the COVID-19 pandemic), the S&P 500, S&P MidCap 400 and S&P SmallCap 600 Indices posted cumulative total returns of 38.16%, 31.70% and 30.79%, respectively, according to Bloomberg.

6. Sector performance can vary widely by market cap (see table). Three of the more extreme cases from 2020-2021 include Information Technology, Real Estate and Utilities. So far in 2022, it is Communication Services, Health Care, Materials and Utilities.

7. As of the close on 8/15/22, the percentage of stocks in the S&P 500, S&P MidCap 400 and S&P SmallCap 600 Indices trading above their 50-day moving averages were 91%, 87% and 84%, respectively.

8. The percentage of stocks in the S&P 500, S&P MidCap 400 and S&P SmallCap 600 Indices trading above their 200-day moving averages were 45%, 51% and 49%, respectively.

9. Moving averages tend to smooth out day-to-day price fluctuations and can be a useful tool for traders and investors to identify both positive trends and reversals, in our opinion.