Since leading the market in 2021 and 2022, energy has been one of the S&P 500’s most disregarded sectors. After stocks recovered from 2022’s bear market, technology and communication services—home to five of the Magnificent Seven—have led the market each year.
In the three years since 2022, the energy sector has posted losses of 1.3%, and uninspiring gains of 5.7% and 8.7%, respectively, trailing the market and finishing near the bottom of all 11 sectors. Much of that was fueled by waning global oil demand alongside a years-long supply surplus.
