The S&P 500’s Industrials sector rebounded more than 1% on Friday for one of its strongest sessions of the past month. That bounce came after Thursday’s close below its 200-DMA, the sector’s first below that level since 5/1/25. After a steep decline from its August highs, Industrials is testing a level that provided support during the spring pullback.
Thursday’s decline ended a streak of 340 straight closes above the 200-DMA, the sixth-longest since 1990 and the longest since March 2018. Only five streaks have lasted longer over the last 36 years, with the record of 500 trading days ending in April 2005. Friday’s rally brought some relief, but the 200-DMA will be a key level to watch as the sector tries to find its footing.
Even with Friday’s rebound, Industrials is down 7.4% since the S&P 500’s last record high on 8/13, making it the worst-performing sector during that span. That’s four times the S&P 500’s 1.8% decline and over three percentage points worse than the next-weakest sector, Utilities (-4.2%). Only Communication Services and Energy are higher since that high, with Energy continuing to stand out, up 6.3%. Technology is the only other sector outperforming the S&P 500, which seems ironic given all the fears over the weekend about a slowdown in AI investment.
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