Trump BumpThe sectors that have seen the most dramatic gains are financials, industrials, healthcare, and materials. The ones that have fallen hard include consumer staples, utilities, and technology. Both energy and consumer discretionary have been somewhere in-between, about average. Also, worth noting is the big jump in interest rates. More on that later. The backdrop of a Trump presidency makes these price moves understandable. Let's take them one by one: Industrials: Trump has promised to increase spending on the military and to use the proceeds from taxes on repatriated corporate cash (that's brought back from overseas) to fund the rebuilding of national infrastructure. This bodes well for both the defense & aerospace element of this sector and the more general industrial equipment and machinery elements. In addition, the states that truly carried him to victory were the "Rust Belt" states of Pennsylvania, Michigan, and Wisconsin, which more often vote democrat. If Trump maintains his promise to revitalize manufacturing, which is likely what brought these states over to his camp, then that will also be positive for industrials. Health Care: From 2012 through mid-2015, Biotech was arguably the hottest sector in the market by a wide margin. In September 2015 and August 2016, Hillary made statements about the prices of pharmaceuticals that suggested she might impose price controls onto the industry. Ever since these statements were made, the sector has struggled - falling as much as 40% from it's high to low. With that risk now off the table, the sector has jumped.
The Trump administration and GOP allies in Congress are also likely to repeal and replace Obamacare right away. It's hard to say at this point what impact that will have on the sector until more details come out.