Sector breakdown since the start of the U.S.–Iran conflict: Energy leads, materials lags

[Wall Street New York stock exchange stock market]
alexsl

Market volatility has jumped since the outbreak of the Iran–U.S. conflict on February 28, prompting investors to reassess risk exposure and rotate toward defensive and opportunity-rich sectors. Performance across the 11 S&P 500 sectors has diverged notably, reflecting shifting sentiment amid geopolitical uncertainty.

Energy has emerged as the clear outperformer, benefiting from heightened concerns over supply disruptions and rising commodity prices. In contrast, materials have lagged, facing pressure as investors pull back from the precious metals and mining space.

The broader market response underscores a search for clarity as participants evaluate which sectors offer resilience and upside potential, and which remain most vulnerable as tensions in the Middle East continue to evolve.

Outlined below is how all 11 sectors have performed since the outbreak in the Middle East:

* State Street Energy Select Sector SPDR ETF (XLE [https://seekingalpha.com/symbol/XLE]) +6.9%
* State Street Technology Select Sector SPDR ETF (XLK [https://seekingalpha.com/symbol/XLK]), -0.9%.
* State Street Utilities Select Sector SPDR ETF (XLU [https://seekingalpha.com/symbol/XLU]) -2.4%.
* State Street Communication Services Select Sector SPDR ETF (XLC [https://seekingalpha.com/symbol/XLC]), -4.4%.
* State Street Real Estate Select Sector SPDR ETF (XLRE [https://seekingalpha.com/symbol/XLRE]) -4.5%
* State Street Financial Select Sector SPDR ETF (XLF [https://seekingalpha.com/symbol/XLF]) -4.7%.
* State Street Consumer Discretionary Select Sector SPDR ETF (XLY [https://seekingalpha.com/symbol/XLY]) -6.8%.
* State Street Industrial Select Sector SPDR ETF (XLI [https://seekingalpha.com/symbol/XLI]), -7.6%.
* State Street Health Care Select Sector SPDR ETF (XLV [https://seekingalpha.com/symbol/XLV]) -8.5%.
* State Street Consumer Staples Select Sector SPDR ETF (XLP [https://seekingalpha.com/symbol/XLP]) -8.7%
* State Street Materials Select Sector SPDR ETF (XLB [https://seekingalpha.com/symbol/XLB]) -10.5%

COMMUNICATION SERVICES ETFS: (XLC [https://seekingalpha.com/symbol/XLC]), (VOX [https://seekingalpha.com/symbol/VOX]), (IYZ [https://seekingalpha.com/symbol/IYZ]), (RSPC [https://seekingalpha.com/symbol/RSPC]), and (XTL [https://seekingalpha.com/symbol/XTL]).

CONSUMER DISCRETIONARY ETFS: (XLY [https://seekingalpha.com/symbol/XLY]), (VCR [https://seekingalpha.com/symbol/VCR]), (FXD [https://seekingalpha.com/symbol/FXD]), (FDIS [https://seekingalpha.com/symbol/FDIS]), (RSPD [https://seekingalpha.com/symbol/RSPD]), and (RXI [https://seekingalpha.com/symbol/RXI]).

CONSUMER STAPLES ETFS: (XLP [https://seekingalpha.com/symbol/XLP]), (VDC [https://seekingalpha.com/symbol/VDC]), (IYK [https://seekingalpha.com/symbol/IYK]), (FSTA [https://seekingalpha.com/symbol/FSTA]), (KXI [https://seekingalpha.com/symbol/KXI]), and (RSPS [https://seekingalpha.com/symbol/RSPS]).

ENERGY ETFS: (XLE [https://seekingalpha.com/symbol/XLE]), (VDE [https://seekingalpha.com/symbol/VDE]), (XOP [https://seekingalpha.com/symbol/XOP]), (OIH [https://seekingalpha.com/symbol/OIH]), (AMLP [https://seekingalpha.com/symbol/AMLP]), and (IXC [https://seekingalpha.com/symbol/IXC]).

FINANCIALS ETFS: (XLF [https://seekingalpha.com/symbol/XLF]), (VFH [https://seekingalpha.com/symbol/VFH]), (IYF [https://seekingalpha.com/symbol/IYF]), (FNCL [https://seekingalpha.com/symbol/FNCL]), (IYG [https://seekingalpha.com/symbol/IYG]), and (FXO [https://seekingalpha.com/symbol/FXO]).

HEALTH CARE ETFS: (XLV [https://seekingalpha.com/symbol/XLV]), (VHT [https://seekingalpha.com/symbol/VHT]), (IHI [https://seekingalpha.com/symbol/IHI]), (IXJ [https://seekingalpha.com/symbol/IXJ]), (IYH [https://seekingalpha.com/symbol/IYH]), (FHLC [https://seekingalpha.com/symbol/FHLC]), and (FXH [https://seekingalpha.com/symbol/FXH]).

INDUSTRIALS ETFS: (XLI [https://seekingalpha.com/symbol/XLI]), (VIS [https://seekingalpha.com/symbol/VIS]), (FXR [https://seekingalpha.com/symbol/FXR]), (IYJ [https://seekingalpha.com/symbol/IYJ]), (FIDU [https://seekingalpha.com/symbol/FIDU]), and (RSPN [https://seekingalpha.com/symbol/RSPN]).

MATERIALS ETFS: (XLB [https://seekingalpha.com/symbol/XLB]), (VAW [https://seekingalpha.com/symbol/VAW]), (IYM [https://seekingalpha.com/symbol/IYM]), (FXZ [https://seekingalpha.com/symbol/FXZ]), (MXI [https://seekingalpha.com/symbol/MXI]), and (RSPM [https://seekingalpha.com/symbol/RSPM]).

REAL ESTATE ETFS: (VNQ [https://seekingalpha.com/symbol/VNQ]), (XLRE [https://seekingalpha.com/symbol/XLRE]), (IYR [https://seekingalpha.com/symbol/IYR]), (USRT [https://seekingalpha.com/symbol/USRT]), and (HOMZ [https://seekingalpha.com/symbol/HOMZ]).

TECH ETFS: (VGT [https://seekingalpha.com/symbol/VGT]), (XLK [https://seekingalpha.com/symbol/XLK]), (IYW [https://seekingalpha.com/symbol/IYW]), (FTEC [https://seekingalpha.com/symbol/FTEC]), (IXN [https://seekingalpha.com/symbol/IXN]), and (RSPT [https://seekingalpha.com/symbol/RSPT]).

UTILITIES ETFS: (XLU [https://seekingalpha.com/symbol/XLU]), (VPU [https://seekingalpha.com/symbol/VPU]), (FUTY [https://seekingalpha.com/symbol/FUTY]), (IDU [https://seekingalpha.com/symbol/IDU]), (FXU [https://seekingalpha.com/symbol/FXU]), and (JXI [https://seekingalpha.com/symbol/JXI]).

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