Atypical Sector Leadership during Pullback Argues Better Days Ahead

September 29, 2026

Atypical Sector Leadership during Pullback Argues Better Days Ahead

R2000 sector relative performance during the current decline argues the pull-back is mainly due to higher rates and not concern over growth.  The R2000 is -8.0% off its 8/14 high prompting the question, is this the start of a larger correction or more of a garden-variety 5-10% pull-back.  Through Friday (9/25) sector relative performance argues it looks more like a growth-led market taking a breather with cyclicals and rate-sensitive defensives bearing the brunt of the decline.