Many analysts predict that the stock market rally in the second half of this year will continue its trend of spreading outwards from large-cap technology stocks. In just the past few weeks, the market direction has become increasingly clear: investors are turning their attention beyond mega-corporations and chipmakers.
One sector benefiting from this sector rotation is rail, air, and trucking companies—those that transport the goods and supplies that keep the economy running. The Dow Jones Transportation Average, which tracks 20 large transportation companies, rose 3.2% on Thursday, bringing its total gain for July to date to 5%. This sector is traditionally seen as a barometer of economic health and recently posted its best start to the year since 1991. Healthcare is another sector that has recorded gains. The S&P 500 Healthcare Index has risen 6.2% over the past month, the best performing of the 11 sectors in the S&P 500.
