Section 1 · Stock Fundamentals
Sectors & Industries
How the market organizes itself into groups — and why it matters.
Like aisles in a grocery store.
The stock market is divided into 11 sectors: Technology, Healthcare, Finance, Energy, and more. Stocks in the same sector often move together — when oil prices rise, all energy stocks tend to rise. Momentum traders watch which sectors are hot right now and ride that wave.
3 things to know
The 11 GICS sectors classify every public company on earth.
Sector rotation — money flowing sector to sector — drives big market trends.
Healthcare and Technology are the two largest S&P 500 sectors by weight.
Key vocabulary — tap each card
Did you know?
The worst-performing sector in one year is often the best-performing sector the next. This 'sector rotation' is one of the most reliable patterns in market history.