Chart of the Day - Friday, September 5, 2025
September 5, 2025
🏆 Today's Chart of the Day was shared by Ian McMillan (@the_chart_life).
- The Communications sector ($XLC) led by a decent margin this week, gaining +2.8% or twice as much as the next best sector (Health Care). It's been the best performing sector this year, rising +19.1% YTD.
- On a relative basis, the sector had its best week versus the S&P 500 since January. Ian notes that the ratio ($XLC/$SPY) broke out of an eight-month consolidation this week, closing at its highest level since 2021. Further leadership is likely after this week's breakout.
- Alphabet ($GOOGL) did most of the heavy lifting this week, but other heavyweights like $META and $NFLX could help the sector in the coming weeks.
The Takeaway: The Communications sector ($XLC) is reasserting its leadership after emerging from an eight-month consolidation relative to the S&P 500.