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

Core Insights - The U.S. stock market has shown broad gains in 2025, with real estate being the only sector to record negative returns year-to-date, declining approximately 0.17% [1][3][4] Real Estate Sector - Real estate's underperformance is attributed to high interest rates, which inflate borrowing costs and negatively impact property valuations [3] - Companies in both commercial and residential real estate are facing tighter financing conditions, reduced demand in key sub-segments, and lower transaction volumes [3][4] Top Performing Sectors - Communication services lead the market with over 25% gains, driven by strong advertising revenues and the performance of major companies like Alphabet and Meta [5] - Basic materials follow with returns exceeding 22%, fueled by rising demand for industrial metals and chemicals, with companies like Freeport-McMoRan and Linde contributing to this growth [6] - Utilities have gained nearly 19%, benefiting from increased electricity demand due to data-center expansion and AI-related needs, with major players like NextEra Energy and Duke Energy seeing significant advantages [7] - The technology sector continues to thrive, supported by semiconductor and cloud-infrastructure companies such as Nvidia and Microsoft, amidst a recovery following a notable market crash in early April [8][9]