US Large-Cap Dividend Payers: A Less Volatile, Technically Bullish Option

The S&P 500 Equal-Weight Index outperformed the traditional market-cap-weighted index in August for the first time in five months. Investors are moving into underperforming sectors like Materials and Health Care, and mildly into Large-Cap Dividend Payers, which may offer less volatility and technical upside.

The S&P 500 Equal-Weight Index outperformed the traditional market-cap-weighted index in August for the first time in five months. This performance shift reflects a broader trend where investors are moving into underperforming sectors like Materials and Health Care, and mildly into Large-Cap Dividend Payers, which may offer less volatility and technical upside [1].

Health care stocks were mixed late Wednesday afternoon, with the NYSE Health Care Index adding 0.1% and the Health Care Select Sector SPDR Fund (XLV) shedding 0.1% [2]. The iShares Biotechnology ETF (IBB) was up 0.1%. Corporate news included Moderna (MRNA) receiving FDA approval for updated COVID-19 vaccine formulas, which led to a 1.3% increase in Moderna shares [2]. Meanwhile, UnitedHealth (UNH) saw its shares rise 1.2% as the DOJ expanded its investigation into the insurer's prescription management services [2]. Pfizer (PFE) and BioNTech (BNTX) also received FDA approval for their LP.8.1-adapted COVID-19 vaccine, with Pfizer shares adding 0.7% and BioNTech falling 1.2% [2]. Azitra (AZTR) shares surged 32% after initiating a phase 1/2 trial for its biotherapeutic candidate [2].

Large-cap stocks also saw significant movements in August. EchoStar (SATS) was the best-performing large-cap stock, surging 90% driven by a spectrum sale deal with AT&T (T) [3]. Bloom Energy (BE) was the second-best performer, returning 41.6% after issuing strong earnings, and Reddit (RDDT) was the third-best, with a return of 40.2% [3].

Investors' interest in these sectors and stocks suggests a shift towards more stable and potentially less volatile investments. However, the performance of these stocks and sectors should be closely monitored as market conditions evolve.

References:
[1] https://finance.yahoo.com/news/sector-health-care-stocks-mixed-194155126.html
[2] https://www.investing.com/analysis/the-top-3-largecap-stocks-in-august-200666214
[3] https://www.investing.com/analysis/the-top-3-largecap-stocks-in-august-200666214