The Globe and Mail reports in its Tuesday edition that the U.S. energy sector is experiencing a surge in shares as investors seek to safeguard their portfolios from the likely resurgence of inflation. A Reuters dispatch to The Globe reports that the S&P 500 energy sector is up about 17 per cent in 2024, twice the year-to-date returns of the broader index. Of late, the sector has been the best performing sector of the S&P 500 in the past month. The increase in oil prices is the primary driver of this trend, with the U.S. crude seeing a 20-per-cent rise year-to-date due to the strong economy and concerns over the conflict in the Middle East. Some believe investing in the energy sector is a hedge against inflation. This year, consumer prices have risen more than anticipated, which could restrain the broader stock rally by undermining the expectations of a Federal Reserve rate cut in 2024. Wealth Enhancement Group's Ayako Yoshioka notes that having some exposure to commodities could be a hedge against inflation. The portfolios that she manages are overweight in energy stocks, including those of Exxon Mobil and Chevron, as she believes that energy companies have become more disciplined in their capital spending.