Investors Shift To Defensive Stocks As Volatility Returns

Benzinga

Wall Street is rotating into defensive sectors—utilities, healthcare, and staples—as volatility rises and yields fall. Analysts say weakening labor data and cautious consumers are tempering growth despite AI-driven optimism.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Wall Street investors are shifting to defensive sectors as market volatility returns,

00:07with utilities, healthcare, and consumer staples on track to lead the SP500 this month for the

00:13first time since June 2022. Investors are seeking stability in electricity, drugs,

00:20and groceries amid slowing economic indicators, according to the Wall Street Journal.

00:24The 10-year Treasury yield has fallen below 4% for the first time in a year,

00:29and gold hit new records this week as capital flows to safe havens.

00:34Analysts expect SP500 earnings to grow 16% over the next year,

00:39supported by mega-cap tech gains and AI-driven spending.

00:42Though cracks are emerging in consumer and credit markets,

00:46Bernstein's Alex Shaloff warned that a weak labor market is pressuring low-income consumers,

00:51tempering post-COVID spending, and weighing on stock performance.

00:55For all things money, visit Benzinga.com.

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