Tracking the Market: Sectoral Associations with the S&P 500 Index

Shashwat Tyagi

doi:10.46609/IJSSER.2025.v10i07.025

Title: Tracking the Market: Sectoral Associations with the S&P 500 Index
Authors: Shashwat Tyagi
Journal: International Journal of Social Science and Economic Research (IJSSER) ISSN: 2455-8834 Volume: 10 Issue: 7 Publication Date: July 2025 DOI: 10.46609/IJSSER.2025.v10i07.025
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Shashwat Tyagi Emory University, Georgia
MLA 8 Tyagi, Shashwat. "Tracking the Market: Sectoral Associations with the S&P 500 Index." Int. j. of Social Science and Economic Research, vol. 10, no. 7, July 2025, pp. 2922-2928, doi.org/10.46609/IJSSER.2025.v10i07.025. Accessed July 2025. APA 6 Tyagi, S. (2025, July). Tracking the Market: Sectoral Associations with the S&P 500 Index. Int. j. of Social Science and Economic Research, 10(7), 2922-2928. Retrieved from https://doi.org/10.46609/IJSSER.2025.v10i07.025 Chicago Tyagi, Shashwat. "Tracking the Market: Sectoral Associations with the S&P 500 Index." Int. j. of Social Science and Economic Research 10, no. 7 (July 2025), 2922-2928. Accessed July, 2025. https://doi.org/10.46609/IJSSER.2025.v10i07.025.
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ABSTRACT: This study investigates the extent to which different industry sectors align with the overall performance of the S&P 500 index. Using visual trend analysis of daily open and close prices, the research evaluates the co-movement between the S&P 500 and six key sectoral indices: industrials, financials, consumer staples, healthcare, energy, and oil. The results show clear variation in the degree of alignment. Industrials and financials exhibit the strongest positive associations with the S&P 500, closely tracking the index with minimal dispersion. Consumer staples and healthcare also follow the index, though with somewhat weaker intensity. In contrast, energy shows a more modest correlation, and oil demonstrates the weakest association, with highly scattered movements and a near-flat trend line. These findings highlight the importance of sectoral differentiation in understanding market behavior and provide insights for investors, analysts, and policymakers in designing sector-specific investment and risk strategies.

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