Investors' concerns over the Fed's monetary policy tightening to curb runaway inflation has led the S&P 500 to a 13% decline this year and 8.8% in April. Meanwhile, fears about an anticipated economic slowdown and the Ukraine-Russia war continue to spook investors. However, consumer defensive stocks have proved to be among the best performing sectors of the S&P 500 over the past month amid the market volatility.
However, some experts believe that the defensive sector’s rally will be brief. They expect the trend will reverse when investors return to the major technology and growth companies that have been driving markets upward for years. Furthermore, increasing Treasury yields in response to the Fed’s hawkish policy might pressure defensive stocks.
