XLB's Tough Year: Weak Momentum, Rising Risks, And No Clear Turnaround

Core Insights - The Materials sector is facing challenges despite favorable conditions such as an 8% decline in the U.S. Dollar Index (DXY) and a significant rise in gold stocks in 2025, which typically would support the broader resource space [1]. Group 1 - The U.S. Dollar Index (DXY) is down 8% year-to-date, currently near 99 [1]. - Gold stocks have experienced substantial growth in 2025, indicating potential bullish sentiment for the resource sector [1]. - Despite these positive indicators, the Materials Select Sector SPDR has struggled, highlighting a disconnect between macroeconomic factors and sector performance [1].