S&P 500 rises 12% since April, led by chip stocks despite low consumer sentiment and rising mortgage rates.

The S&P 500 index has surged over 12% since April, driven largely by a 40% rebound in chip stocks, even as consumer sentiment hit a record low of 48.2 in May due to rising US 30-year mortgage rates above 6.5%. Despite the rally, defensive sectors like consumer staples have declined by 6% since February, and their market cap share in the S&P 500 has dropped to a record low of 15%. This market movement highlights a strong tech-driven recovery amid cautious consumer outlook and higher borrowing costs.