The post Here’s the only stock sector to record negative returns in 2025 appeared on BitcoinEthereumNews.com. The U.S. stock market has delivered broad gains across nearly every major sector in 2025, but only one industry has recorded negative returns year-to-date. Data indicates that real estate stands out as the only sector to post negative year-to-date performance, slipping about 0.17% while the rest of the S&P 500’s industry groups advance. Stock market performance YTD. Source: Finviz It can be argued that real estate’s weakness stems largely from persistent pressure tied to elevated interest rates, which continue to inflate borrowing costs and squeeze property valuations. Notably, companies across commercial and residential real estate are contending with tighter financing conditions, softer demand in key sub-segments, and sluggish transaction volumes. This backdrop has weighed on real estate investment trusts and property developers throughout the year, leaving the sector lagging behind even the most defensive parts of the market. 2025 stock market top performers  While real estate struggles to gain traction, several other sectors are powering ahead with massive gains YTD. For instance, communication services lead the market with gains of more than 25%, supported by strong advertising revenues, digital-platform monetization, and the solid performance of large-cap names such as Alphabet and Meta.  Basic materials follow closely with returns above 22%, driven by rising demand for industrial metals and chemical products as global manufacturing and infrastructure projects accelerate; companies such as Freeport-McMoRan and Linde have helped lift the group. Utilities have also emerged as an unexpected winner, gaining nearly 19% thanks to soaring electricity demand from data-center expansion and AI-related power needs. Large operators like NextEra Energy and Duke Energy have benefited from this shift, turning what is typically a defensive sector into one of 2025’s standout performers. At the same time, technology continues to advance, supported by strength in semiconductor and cloud-infrastructure companies, including Nvidia and Microsoft, both riding the… The post Here’s the only stock sector to record negative returns in 2025 appeared on BitcoinEthereumNews.com. The U.S. stock market has delivered broad gains across nearly every major sector in 2025, but only one industry has recorded negative returns year-to-date. Data indicates that real estate stands out as the only sector to post negative year-to-date performance, slipping about 0.17% while the rest of the S&P 500’s industry groups advance. Stock market performance YTD. Source: Finviz It can be argued that real estate’s weakness stems largely from persistent pressure tied to elevated interest rates, which continue to inflate borrowing costs and squeeze property valuations. Notably, companies across commercial and residential real estate are contending with tighter financing conditions, softer demand in key sub-segments, and sluggish transaction volumes. This backdrop has weighed on real estate investment trusts and property developers throughout the year, leaving the sector lagging behind even the most defensive parts of the market. 2025 stock market top performers  While real estate struggles to gain traction, several other sectors are powering ahead with massive gains YTD. For instance, communication services lead the market with gains of more than 25%, supported by strong advertising revenues, digital-platform monetization, and the solid performance of large-cap names such as Alphabet and Meta.  Basic materials follow closely with returns above 22%, driven by rising demand for industrial metals and chemical products as global manufacturing and infrastructure projects accelerate; companies such as Freeport-McMoRan and Linde have helped lift the group. Utilities have also emerged as an unexpected winner, gaining nearly 19% thanks to soaring electricity demand from data-center expansion and AI-related power needs. Large operators like NextEra Energy and Duke Energy have benefited from this shift, turning what is typically a defensive sector into one of 2025’s standout performers. At the same time, technology continues to advance, supported by strength in semiconductor and cloud-infrastructure companies, including Nvidia and Microsoft, both riding the…

Here’s the only stock sector to record negative returns in 2025

The U.S. stock market has delivered broad gains across nearly every major sector in 2025, but only one industry has recorded negative returns year-to-date.

Data indicates that real estate stands out as the only sector to post negative year-to-date performance, slipping about 0.17% while the rest of the S&P 500’s industry groups advance.

Stock market performance YTD. Source: Finviz

It can be argued that real estate’s weakness stems largely from persistent pressure tied to elevated interest rates, which continue to inflate borrowing costs and squeeze property valuations.

Notably, companies across commercial and residential real estate are contending with tighter financing conditions, softer demand in key sub-segments, and sluggish transaction volumes.

This backdrop has weighed on real estate investment trusts and property developers throughout the year, leaving the sector lagging behind even the most defensive parts of the market.

2025 stock market top performers 

While real estate struggles to gain traction, several other sectors are powering ahead with massive gains YTD. For instance, communication services lead the market with gains of more than 25%, supported by strong advertising revenues, digital-platform monetization, and the solid performance of large-cap names such as Alphabet and Meta. 

Basic materials follow closely with returns above 22%, driven by rising demand for industrial metals and chemical products as global manufacturing and infrastructure projects accelerate; companies such as Freeport-McMoRan and Linde have helped lift the group.

Utilities have also emerged as an unexpected winner, gaining nearly 19% thanks to soaring electricity demand from data-center expansion and AI-related power needs. Large operators like NextEra Energy and Duke Energy have benefited from this shift, turning what is typically a defensive sector into one of 2025’s standout performers.

At the same time, technology continues to advance, supported by strength in semiconductor and cloud-infrastructure companies, including Nvidia and Microsoft, both riding the ongoing wave of enterprise AI adoption.

This comes at a time when the year suffered one of the most notable crashes in early April, when markets tanked in reaction to the tariffs proposed by President Donald Trump. 

Since then, the stock market has recovered, with the benchmark S&P 500 surging to new highs and a section of Wall Street suggesting the index could hit 7,000 by the end of the year.

Featured image via Shutterstock

Source: https://finbold.com/heres-the-only-stock-sector-to-record-negative-returns-in-2025/

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