The Materials sector is the second smallest of all the 11 sectors in the S&P 500 index. At just a 2.5% weighting, it’s worth less than each Apple, Amazon, Microsoft, NVIDIA, and Alphabet.
It’s tough to spend much time delving deeply into a group with so few constituents – especially when most are underperforming. Check out the equally weighted Materials sector compared the the equally weighted S&P 500. The ratio is stuck in a technical downtrend beneath last year’s lows.