The S&P 500 fell 4.6% year-to-date through March, with energy the sole sector posting significant gains amid broader market struggles.
The S&P 500 declined 4.6% year-to-date through March 31, 2026, as most sectors faced headwinds from inflation, geopolitical tensions, and AI-related volatility. Energy emerged as the standout performer, with the State Street Energy Select Sector SPDR ETF (XLE) surging 31.9% in the first quarter, far outpacing other sectors.
Five sectors posted losses ranging from 4.5% to 10%, including healthcare (-4.6%), financials (-9.7%), and tech (-6.3%). Another five sectors delivered modest gains of 1.5% to 11.5%, led by materials (11.3%) and utilities (8%). The divergence underscored persistent market uncertainty as investors navigated shifting macroeconomic conditions.
Consumer goods and tech stocks faced particular pressure, with inflation eroding margins and AI adoption creating operational challenges. Meanwhile, energy’s rally reflected supply constraints and heightened demand amid ongoing geopolitical risks.