S&P 500 snaps 3-week losing streak, led by consumer discretionary stocks

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The S&P 500 (SP500) snapped a three-week losing streak on Friday, gaining 3.65% for the week after the Labor Day holiday weekend. The benchmark index rose in three of the four sessions this week.

The SPDR S&P 500 Trust ETF (NYSEARCA:SPY) on Friday climbed 3.66% this week alongside the benchmark index. The ETF is -15.6% YTD.

Investors appeared to be bargain-hunting following recent weakness in the market triggered by the Federal Reserve’s increasingly hawkish remarks. Chicago Fed governor Christopher Waller said he will back another rate hike, while Kansas City Fed President Esther George advocated for a steady path of rate hikes. Also, the ECB raised key policy rate by 75 bps and expects more rate hikes.

The market is now pricing in a 90% chance of a 75 bps hike, with 10% possibility of a 50 bps increase. But with retail inflation data expected next week, a tame CPI number could make a 50 bps hike likely.

This week saw a host of economic data, including softer-than-expected Aug. global service PMI, Aug. ISM services PMI above consensus, and an unexpected drop in weekly jobless claims.

All 11 sectors in the S&P 500 closed in the green for the week, with Consumer Discretionary sector as the top gainer. See below a breakdown of the weekly performance of the sectors as well as the performance of their accompanying SPDR Select Sector ETFs from Sept. 2 close to Sept. 9 close:

#1: Consumer Discretionary +5.62%, and the Consumer Discretionary Select Sector SPDR ETF (XLY) +5.78%.

#2: Materials +4.94%, and the Materials Select Sector SPDR ETF (XLB) +5%.

#3: Financials +4.38%, and the Financial Select Sector SPDR ETF (XLF) +4.47%.

#4: Health Care +4.35%, and the Health Care Select Sector SPDR ETF (XLV) +4.41%.

#5: Real Estate +4.13%, and the Real Estate Select Sector SPDR ETF (XLRE) +4.26%.

#6: Utilities +3.68%, and the Utilities Select Sector SPDR ETF (XLU) +3.73%.

#7: Industrials +3.39%, and the Industrial Select Sector SPDR ETF (XLI) +3.40%.

#8: Information Technology +3.24%, and the Technology Select Sector SPDR ETF (XLK) +3.27%.

#9: Communication Services +2.86%, and the Communication Services Select Sector SPDR Fund (XLC) +3.31%.

#10: Consumer Staples +1.92%, and the Consumer Staples Select Sector SPDR ETF (XLP) +1.96%.

#11: Energy +0.60%, and the Energy Select Sector SPDR ETF (XLE) +0.80%.

Below is a chart of the 11 sectors’ YTD performance and how they fared against the S&P 500. For investors looking into the future of what’s happening, take a look at the Seeking Alpha Catalyst Watch to see next week’s breakdown of actionable events that stand out.