The biotechnology sector, as represented by the SPDR S&P Biotech ETF ($XBI), has demonstrated notable strength and upward momentum in recent weeks. Over the past month, $XBI has risen approximately 22%, reflecting a broader trend of relative strength within biotech stocks. This positive price action contrasts with other sectors, as only defensive sectors such as consumer staples ($XLP) and healthcare ($XLV) have also shown gains recently. Market observers attribute this resurgence to several factors, including expectations of a macroeconomic downturn, a projected decline in the 10-year Treasury yield below 3% later this year, and an anticipated increase in pharmaceutical company buyouts driven by patent expirations (loss of exclusivity). These dynamics suggest a renewed investor interest in the biotech industry, signaling a potential recovery phase for the sector.