Skip to main content

Sectors

We organize the market into 11 core sectors — broad groups of industries that move in response to different economic, policy, and market forces. Each sector reflects a unique part of the economy, from the innovation-driven world of Technology to the income stability of Utilities or the cyclical booms of Energy and Industrials. Understanding sector behavior is essential: some sectors lead in bull markets, others defend in downturns, and many react sharply to interest rates, inflation, or geopolitical shifts. Our sector-level analytics help you spot rotations, time macro trades, and align strategies with the prevailing market regime.

Basic Materials​

Companies in the Basic Materials sector produce the raw inputs used to build, manufacture, and grow — from industrial metals and lumber to agricultural inputs and specialty chemicals. These businesses are closely tied to commodity cycles, global industrial activity, and inflation trends. Basic Materials stocks tend to outperform during the early to mid stages of economic expansion, when construction and manufacturing accelerate. They can also benefit from rising inflation and commodity supercycles, but may underperform when growth slows or during deflationary shocks.

Includes Industries:

Communication Services​

This sector includes companies shaping the way people connect, consume, and communicate — spanning streaming platforms, social media, broadcasters, telecoms, and digital advertising. It blends the reach of traditional media with the scalability of digital platforms. For traders, this sector becomes more relevant during risk-on markets that reward growth and engagement metrics, and during periods of rising ad spend or tech rotations. Telecom names may act defensively, while platforms tied to ad revenue or user growth can spike with strong earnings or engagement trends.

Includes Industries:

Consumer Cyclical​

Consumer Cyclical companies rely on discretionary spending — including retail, autos, travel, home improvement, and luxury. These businesses typically flourish when consumer confidence is strong, job markets are tight, and disposable income is flowing. As such, they tend to lead in early bull markets and mid-cycle expansions. Traders watch this sector closely during periods of rising wages, holiday seasons, and housing booms, but rotate out when growth softens, rates rise, or inflation erodes purchasing power.

Includes Industries:

Consumer Defensive​

Consumer Defensive stocks sell the everyday essentials — groceries, household goods, beverages, tobacco, and basic personal care — making this a non-cyclical group with consistent demand. These companies become more attractive during market corrections, recessions, or when volatility spikes, as their revenue is less sensitive to economic swings. For traders, this is a key defensive rotation play and often a haven during risk-off environments. They also tend to hold up well when inflation rises, thanks to strong pricing power.

Includes Industries:

Energy​

The Energy sector includes oil and gas explorers, refiners, service firms, and alternative energy producers. Performance is closely tied to commodity prices, geopolitical tensions, and global demand trends. For traders, Energy is a classic late-cycle outperformer and often a leader in inflationary or stagflationary environments. It shines when oil spikes due to supply shocks, conflict, or OPEC decisions, and can offer explosive upside during commodity bull markets. However, it's also highly volatile and sensitive to demand destruction or regulatory shifts.

Includes Industries:

Financial Services​

This sector spans banks, asset managers, insurers, brokerages, and credit networks — essentially, the machinery behind lending, investing, and capital markets. Financials tend to benefit from rising interest rates, which widen net interest margins for banks, and from economic growth, which fuels loan demand and investing activity. Traders often look to this sector in early expansions, during rate hike cycles, or when capital markets are strong. But they also watch for cracks during credit tightening, yield curve inversions, or financial crises.

Includes Industries:

Healthcare​

Healthcare includes drugmakers, insurers, hospitals, biotech innovators, and medical device manufacturers. It’s a sector built on demographics, innovation, and regulation, with relatively stable demand regardless of economic cycles. For traders, healthcare offers a mix of defensive stability (insurance, pharma) and high-beta opportunity (biotech). It tends to outperform during market drawdowns or recession fears, and also sees speculative flows during biotech rallies, trial results, or policy headlines.

Includes Industries:

Industrials​

Industrials are the engines of the physical economy — spanning construction, defense, tools, logistics, transportation, and infrastructure. These companies typically benefit from capex cycles, manufacturing recoveries, and public infrastructure investment. For traders, this is a go-to sector during mid-cycle expansions, stimulus-driven markets, or when PMIs are rising. However, they can lag during recessions or periods of tight credit, as project pipelines slow and capital spending gets deferred.

Includes Industries:

Real Estate​

This sector covers developers, real estate operators, and REITs that own residential, commercial, and specialty properties (like data centers or industrial warehouses). Real estate tends to attract capital in low interest rate environments, when income and yield are in demand. Traders rotate into real estate when rates fall, or during Fed pauses, as valuation sensitivity to yields is high. Different subsectors (e.g., hotels, offices, logistics) respond uniquely to economic cycles, making this a nuanced area for tactical positioning.

Includes Industries:

Technology​

Technology includes hardware makers, chip designers, software developers, cloud platforms, and AI infrastructure players. It’s the most growth-sensitive sector and often the first to react to rate changes, sentiment shifts, and innovation cycles. Traders gravitate toward tech in low-rate, risk-on environments, and during periods of secular growth like the AI boom. It can underperform during rate spikes or revaluations, but tends to rebound quickly on dovish pivots or breakthrough developments.

Includes Industries:

Utilities​

Utilities deliver electricity, gas, and water — essential services with stable cash flows and regulated pricing. These companies are traditionally seen as defensive and yield-driven, performing well in risk-off markets or when bond yields fall, making their dividends more attractive. For traders, Utilities are a classic play during flight to safety, economic slowdowns, or periods of central bank easing. They often underperform when interest rates rise sharply, as higher yields compete with their income appeal.

Includes Industries: