If you haven’t looked at US equity markets recently, you may be surprised when you do. The S&P 500 is up a staggering 16.3% in the quarter and 11.3% on the year. A client asked this week what sectors have been leading to the market’s stunning recovery from its lows earlier this year.

As a reminder, the US equity market (as measured by the S&P 500 index) is broken into eleven sectors of varying weights. These sectors take turns driving the market higher (or lower) and depending on their size, their individual under or over performance can be very impactful to the market’s overall return.

Below is a chart of the various sector returns as of May 31, 2026 – month to date, quarter to date, and year to date. Also shown are the sector weights as of that same date. One look at the chart and you will clearly see what’s driving the market as of late – technology.

Within technology, it has been the semiconductor and memory names that are dominating returns. The semiconductor segment now comprises 18% of the S&P 500 (over half of the technology sector).

The tide can easily change – as it has in the past. Earlier this year, energy was dominating but this month, it’s taken a back seat to technology.

Following the sectors can be a fun way to see what’s driving markets today but is not often a great predictor of what comes next.