Following the Federal Reserve’s 75 basis points rate hike last month, officials are now backing another sharp interest rate hike in July. Meanwhile, recession worries have ramped up due to the central bank’s aggressive stance. Furthermore, Goldman slashed its second-quarter GDP outlook from a 1.9% increase to just 0.7%.
Consumers turn their spending toward necessary items like consumer staples during challenging economic environments. Hence, defensive stocks like staples usually hold their ground in a recessionary backdrop.
