Concept

Market sector

One of the 11 groups the stock market is split into by line of business, like technology, healthcare or energy. Every company in the S&P 500 belongs to exactly one.

Why we track it

Sectors answer to different forces: interest rates, oil, shoppers, new technology. Seeing which ones lead shows what the market is rewarding right now, which a single index number can hide.

Asset allocationHow a portfolio is split among kinds of investments, such as stocks, bonds and cash.
BacktestingTesting an investing rule on historical data to see how it would have performed before putting money behind it.
Basis pointOne hundredth of a percentage point (0.01%), often written bp.
Bear marketA fall of roughly 20% or more from a recent peak, usually over several months.
Bull marketA long stretch of rising prices across a market, often dated from a 20% rise off a low.
Business cycle stagesThe economy’s long rise and fall: years of growth, a slowdown, sometimes a recession, then recovery.

Why we track it

Related terms