"Markets don't like uncertainty, and right now there's plenty of it. Year to date, as of April 2, 2026, the S&P 500 is down 4.36% on a price return basis."
"If the volatility is making you uncomfortable, it may be a sign that your current asset allocation doesn't match your true risk tolerance."
"There are three sectors traditionally considered defensive: consumer staples, utilities, and healthcare. Demand for all three tends to be non-cyclical, resulting in more stable earnings."
"Utilities are no longer the slow-moving 'widows and orphans' stocks they once were. The growing power demands from artificial intelligence and rising infrastructure costs tied to climate risks have changed the landscape."
Investor uncertainty persists due to the ongoing conflict with Iran, impacting market performance. The S&P 500 has decreased by 4.36% year-to-date. Despite this, non-Magnificent Seven stocks show improved breadth, while mega-cap tech stocks have struggled. Investors are advised to assess their risk tolerance and consider simpler ways to reduce risk without exiting the market. Defensive sectors like consumer staples, utilities, and healthcare may offer more stable earnings, although their performance varies significantly based on current economic conditions.
Read at 24/7 Wall St.
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