It was a mixed week for the Major Markets, with the Large Cap Indices looking worse than the broader market actually performed. The Nasdaq dropped 4.6%, and the S&P 500 fell 2.0%, driven by another sharp selloff in semiconductor and mega-cap technology stocks. But beneath the surface, the story was much stronger.

When we look past the Large Cap Blend and Large Cap Growth style boxes, we actually saw gains across most of the rest of the style boxes. Moreover, when we remove the capitalization weighting present within the traditional S&P 500 index, we see that the S&P 500 Equal Weight Index rose 1.6%. This shows that investors continued rotating into other areas of the market rather than exiting stocks altogether.

Health care was the week’s standout, jumping nearly 8% on merger activity and strength in pharmaceutical and biotech companies. Real estate and utilities also benefited as Treasury yields and oil prices moved lower.

Economic data was largely in line with expectations. One of the Fed’s preferred inflation measures, the Personal Consumption Expenditures Index came in line with expectations while easing oil prices helped reduce inflation concerns.

The main takeaway is that market leadership continues to broaden. While technology, especially semiconductors, remains volatile, investors are finding opportunities across many other sectors; a healthy sign for the overall market.