The U.S. Bureau of Labor Statistics data shows that the economy added 372,000 jobs in June, and the unemployment rate remained at 3.6% for the fourth straight month. While this data should ease recession fears, it could be a strong reason for the Fed to keep raising rates aggressively. Therefore, the stock market may continue to witness a downtrend.
Large-cap stocks usually perform steadily amid such uncertainties because of the broad market reach, strong pricing power, and ample liquidity of the underlying companies to survive any short-term headwinds. Investors’ interest in large-cap stocks is evident from the SPDR S&P 500 Trust ETF’s (SPY) 2% returns over the past week.
