The U.S. stock market has taken a turn lower this week, with the benchmark S&P 500 ETF (NYSEARCA: SPY) falling over 2% on the week coming into Friday, Feb. 6's session. Software and technology have led the market lower, along with the recent crypto and Bitcoin crash, sparking greater fears. However, while most of the U.S. equity market has turned lower in recent days and weeks, one segment has flourished. That sector is Consumer Staples.
The Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP) surged almost 6% last week, and is up an impressive 11.89% year to date (YTD). The sector’s defensive nature is proving to be a significant asset right now. From a technical perspective, the sector just broke out of a major multi-year consolidation. With fundamentals and technicals aligning, the sector could be poised for further upside, especially if the broader market continues to face pressure.
