WHICH SECTORS ARE CRUSHING AN WHICH ARE CRYING OVER THIER RETURNS WITHIN THE FIRST 3 MONTHS OF 2026

Winning Sectors (S&P 500, Q1 returns as of March 31) Energy dominated everything — the gap between best and worst sectors hit nearly 50 percentage points. |Rank|Sector|Q1 Return|Key Driver| |:-|:-|:-|:-| || |1|Energy|**+37.9%**|Oil price surge from Iran war disruptions (Strait of Hormuz shipping issues)| |2|Materials|**+10.7%**|Commodity strength tied to energy/inflation| |3|Utilities|**+8.3%**|Defensive play in risk-off environment| |4|Consumer Staples|**+6.1%**|Defensive, inflation-resistant| |5|Industrials|**+4.6%**|Value rotation + domestic focus| # Losing Sectors (S&P 500, Q1 returns) Growth and rate-sensitive sectors suffered the most. |Rank|Sector|Q1 Return|Key Driver| |:-|:-|:-|:-| || |1|Financials|**-9.4%**|Private credit worries, AI exposure, higher-for-longer rates| |2|Consumer Discretionary|**-8.5%**|Rotation out of growth + high valuations| |3|Information Technology|**-7.5%**|“AI loser trade” — fears AI disrupts software/business models| |4|Communication Services|**-5.5%**|Tech-adjacent weakness| |5|Health Care|**-4.9%**|Mild laggard in rotation|