Gold : The Real Estate Sector
On the top step of the podium, it's the real estate sector that takes the gold medal. With an impressive performance of +8.1% since the start of the results season, this sector has much to celebrate. The prospect of the Federal Reserve cutting its key interest rate from September 2024 has provided a significant boost. Residential REITs, which are heavily dependent on mortgage rates, are doing particularly well and look set for a fine end to 2024. CBRE, a real estate investment and services firm, is also forecasting a recovery in commercial real estate in the second half of the year. Demand for the development of new data centers should attract more institutional investment.
Among the sector champions, CBRE gained +18.5%, Iron Mountain +14.1%, and Welltower +12%.
Silver : The Healthcare Sector
In second place, the healthcare sector climbed the podium with a performance of +4.3%. However, results were much more disparate from company to company. Dexcom, for example, fell by a staggering -37%, while Moderna plummeted by -32.5%. Conversely, Universal Health Services (UHS) shone with a +20% rise, thanks to an increase in patient admissions to its acute care facilities. Molina Healthcare and HCA Healthcare also posted strong performances, with gains of +17.4% and +17.1% respectively.
Bronze: The Tech Sector
Finally, the technology sector took the bronze medal, despite a negative overall performance of -6.8% in July. Tech stocks, which had fuelled market gains in the first six months of the year, stumbled. Profit-taking after an impressive rally and turbulence linked to fears of a recession contributed to the decline. And yet, tech's "Magnificent 7" have, on the whole, reported results in line with investor expectations. So it wasn't bad publications that caused the sector to suffer. Among the sector's heavyweights, Intel fell -39%, Super Micro Computer -36.2%, and Crowdstrike suffered a huge IT glitch, plunging -33%.
