The stock market has been on a recovery path after taking a hit from the economic impact of the coronavirus pandemic. The recovery is exhibited by positive returns posted by all sectors over the past year.
According to data acquired by Finbold, all stock sectors’ one-year relative performance as of September 7th, 2021, has generated a positive return on investments. Communication services lead with returns of 43.1%, followed by financials and technology at 40.59% and 39.27%, respectively.
Interestingly, after being among the most hit sectors amid the pandemic, energy ranks in the fourth spot with returns of 38.42%. Consumer defense has the least returns at 9.38%. For half-year relative returns, over 90% of the stock sectors recorded positive returns led by technology with an ROI of 26.96%, followed by communication services at 21.98%. Only the energy sector has negative returns at 0.34%.
However, over the last three months, most sectors have wiped off most of the gains. Technology holds the pole position at 14.57%, followed by communication services at 9.51%. Energy is the worst performer with a negative ROI of 7.51%.
Technology stocks lead stock market recovery
The report notes that several sectors initiated the stock market recovery from the lows of the coronavirus pandemic. According to the research report:
“Furthermore, the technology sector has remained steady, propelling the market to new levels. Notably, amid the pandemic, tech stocks relatively remained unscathed, with investors viewing firms in the sector as crucial beneficiaries from recent trends such as remote working and cloud computing, which rose to prominence. The industry helped people navigate the health crisis.”
Over the past three months, most stocks have wiped out the gains mainly due to economic uncertainty. The uncertainty has resulted from the rising inflation fears alongside the emergence of the coronavirus delta variant.
