Five charts to start your day

Despite the AI hype the Industrials sector has had the most all-time highs in 2024

In the dawn's light, factory smokestacks sketch a skyline of resurgence, as gears turn in harmony, heralding America's industrial roar. This is a trend investors aren’t watching, seduced by the future of AI. But in truth, a huge shift in globalisation is underway. America is moving production closer to home and has already received significant investment to "onshore" operations.

Take a look at the first chart. A considerable number of stocks in the S&P 500 have already reached all-time highs in 2024. In total, 126 companies have achieved this feat, which equates to 26 percent of the S&P 500.

But here's the kicker. This isn’t 2023 where the S&P 500’s returns were dominated by the mega-techs. The market rally is broadening out and one of the biggest beneficiaries in 2024 has been industrials.

Almost half of the companies in the industrials sector have hit record highs, making it one of the most robust segments of the market. Moreover, industrials were the second-best performers in February, registering an impressive 7 percent increase.

Companies like Waste Management and Caterpillar, which may not be as glamorous as tech firms but are vital for the economy, have shown remarkable performance with nearly 30 record highs between them. Within this sector, Uber Technologies has been a standout performer, with 13 record highs and more than a 25 percent return year to date.

Source: Yahoo Finance

Coming up:

• The Enormous Eight are storming ahead in 2024

• Japan’s top 25 companies are worth $2 trillion

• New York Community Bancorp is in deep crisis and the market doesn’t care

• The share of US graduates that are unemployed after leaving college

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