Stocks Just Posted Worst Quarter Since Covid Market Crash—But Buffett’s New Favorite Sector Logged ‘Meteoric Ascent’

Stocks Just Posted Worst Quarter Since Covid Market Crash—But Buffett’s New Favorite Sector Logged ‘Meteoric Ascent’

Share to Linkedin The stock market closed out its worst quarter since the pandemic-induced market crash in early 2020 on Thursday, but a resurgent energy sector fueled by spiking oil prices has posted a stunning rally, with experts predicting the surge will only continue amid heightened inflation and rising interest rates. Legendary investor Warren Buffett plowed into this crop of formerly hard-hit stocks during their ... [+] massively resurgent quarter. Though the broader S&P 500 slumped 4. 9% in the first quarter, the S&P 500 Energy index has skyrocketed nearly 40%, eclipsing the second-best gain of 4% (by utilities) and marking one of only three sectors in positive territory. The S&P's decline since January has "sobered up" bullish investors, but the energy sector has pulled off a "meteoric ascent," Bank of America's Savita Subramanian said in a note to clients last week, predicting the sector should continue to outperform even if geopolitical risks subside and heightened inflation continue. Headlining the sector's stunning first-quarter run-up, top S&P stock Occidental Petroleum skyrocketed more than 98% for its best quarter ever, buoyed by a new nearly $1 billion investment earlier this month from legendary investor Warren Buffett's Berkshire Hathaway, the oil giant's biggest