The S&P 500 has been on a winning streak, with Thursday’s rally pulling the index into positive territory for August. The broad index jumped more than 1% in midday trading, marking its sixth straight winning day and putting it on track for its best week of 2024. With this gain, the S&P 500 is now up about 0.2% compared to where it started the trading month. These advances have led to a 3.5% week-to-date climb, which would make it the S&P 500’s best weekly performance since November 2023.
One sector that has been particularly strong is the health care sector within the S&P 500. The health care sector climbed as much as 0.66% intraday on Thursday, reaching an all-time high and outperforming the large-cap S&P 500 so far in the third quarter. Since the end of June, health care stocks have jumped 4.3% compared to just 1.3% for the S&P 500. The two largest health care exchange-traded funds, the Health Care Select Sector SPDR Fund and the Vanguard Health Care Index Fund ETF, also reached all-time highs on Thursday.
However, not all areas of health care have seen the same level of success. Biotech stocks have lagged behind, with ETFs like the iShares Biotechnology ETF and the SPDR S&P Biotech ETF not reaching all-time highs in quite some time. Despite this, the overall health care sector has been a standout performer in the market.
In other news, activist investor Nelson Peltz’s Trian Fund Management added a nearly $80 million position in U-Haul Holding during the second quarter. While it’s unclear if Peltz is trying to influence company management at U-Haul, the move has led to a more than 2% increase in U-Haul’s stock price in midday trading.
Small cap stocks have also been outperforming their larger counterparts, with the Russell 2000 small cap index leading the way. Investors have been reassured by stronger-than-expected July retail sales, driving small cap stocks higher compared to mid- and large-cap stocks. Growth stocks within the small cap universe have been particularly strong, outperforming value stocks in recent trading sessions.
Economist Ed Hyman noted a „positive growth hat trick“ on Thursday, citing stronger-than-expected retail sales, a decrease in jobless claims, and strengthening Walmart sales. This positive news has been well-received by the market, with the S&P 500 responding positively to the data.
Overall, the market has seen a mix of positive and negative news, with various sectors and individual stocks experiencing significant moves. From the S&P 500’s rise into positive territory for August to the health care sector’s all-time highs and activist investor moves, the market has been dynamic and full of opportunities for investors.