Glossary · Stock basics

Sector rotation

Money moving from one part of the market to another as the economy and rates change.

Why it matters

Leadership changes over the cycle: defensive sectors lead in slowdowns, cyclical sectors in recoveries.

How to read it

The rotation chart shows each sector’s strength against the S&P 500 and whether that strength is rising or fading.

Related

In the Cluenex app, this explanation opens next to every sector rotation figure, with the live reading for the stock you are looking at. Open it in Cluenex