US indexes gyrate wildly, now red again with 2% or more losses
Real Est weakest S&P 500 sector; Comm Svcs off least
Euro STOXX 600 index slides >3%
Dollar rallies; bitcoin falls; gold off >1.5%; crude off >2.5%
U.S. 10-Year Treasury yield jumps to ~4.09%
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FROM DULL TO DYNAMO: UTILITIES' SURPRISING GLOW-UP IN TODAY'S MARKET
As macro uncertainty intensifies, U.S. utilities are emerging as a defensive darling, offering a relatively low-risk refuge.
Insulated from sales volume shocks and tariff risks, utilities benefit from lower interest rates, making them a compelling safe haven in turbulent times.
Utilities .SPLRCU currently trade at a discount to the S&P 500 .SPX, offering a rare value opportunity in a defensive sector, says Jefferies.
What makes certain utilities particularly appealing? Look for companies with "decoupling" mechanisms that insulate them from sales volume fluctuations, manageable regulatory exposure, and limited need for external equity, says Jefferies.
The recent drop in Treasury yields to 4.0% (from 4.6% at year-end 2024) provides an additional tailwind for the sector.
Standout defensive plays include Exelon EXC.O, Consolidated Edison ED.N, ONE Gas OGS.N, Duke Energy DUK.N, and American Water Works AWK.N, which offer lower risk profiles without major project complications facing some of their peers.
While tariff concerns loom over much of the market, utilities remain relatively protected, with flexibility to adjust capital expenditures while maintaining rate base growth.
For investors seeking shelter from market storms, utilities offer that rare combination of relative value, reduced volatility, and defensive positioning when uncertainty reigns.
(Rashika Singh)
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FOR MONDAY'S EARLIER LIVE MARKETS POSTS:
WALL STREET CUTS LOSSES IN VOLATILE TRADING - CLICK HERE
S&P 500 INDEX POISED FOR FURTHER LOSSES; TRADERS EYE THE CHARTS - CLICK HERE
DON'T EXPECT THE FED TO COME TO THE RESCUE - CLICK HERE
WATCH THOSE RETAIL FLOWS - CLICK HERE
SELL EVERYTHING! - CLICK HERE
EUROPE BEFORE THE BELL: FUTURES TANK AS TRUMP STICKS TO HIS GUNS - CLICK HERE
TARIFF MEDICINE'S CRIPPLING SIDE EFFECTS - CLICK HERE
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