Energy and Materials Shares Lead the Way in a Turbulent Stretch for Stocks

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Investors are driving up energy and materials shares in an otherwise rocky month for stocks, betting that inflation will accompany swift economic growth

“You’ve got fever-pitch pricing in copper and iron ore, and you’ve got very strong recovery in oil,” said Jeffrey Germain, director of investments at Brandes Investment Partners.

On an April earnings call, Nucor Chief Executive Leon Topalian said the company was adding shifts at many of its steel-product facilities to meet demand. Nucor’s per-share earnings far exceeded its previous quarterly record, he said. The materials and energy sectors each represented 2.7% of the S&P 500 at the end of April, according to S&P Dow Jones Indices. The technology sector, magnified by last year’s standout performance, made up nearly 27% of the index.

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