The three-week rally in cyclical stocks came to a sudden stop last week. The S&P 500® index had climbed 12 percent between May 15 and June 5. Leading the way were industrials, financials and energy, each with gains in excess of 25 percent, in what was a dramatic shift in leadership for sectors that had been largely laggards throughout much of the recovery. Whether driven by in part by speculative fever, monetary and fiscal largess, reawakening economies, a weaker dollar, or something else entirely, it all came to screeching halt last week. These same three sectors led stocks on the way down last week, bringing an end to the S&P 500’s three-week winning streak. Small stocks, which had outperformed large with a gain of 20 percent over the previous three weeks, also underperformed with a decline of 8 percent. Bond yields fell, credit spreads widened, and volatility rose, as the VIX index climbed back up to 36 after three straight weeks of decline had taken it from 32 to 25. And after rising by more than $10 a barrel in three weeks, WTI crude oil fell by more than $3 last week.