Defensive Shift: Utilities Outshine S&P 500

By Athena Xu

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5/8, 10:13 EDT

Utility companies are outperforming the S&P 500, signaling a defensive market shift that could hinder overall market performance.
The recent move towards defensive stocks marks a departure from earlier in the year when cyclical sectors drove market gains to record highs.
Piper Sandler & Co.'s Craig Johnson notes that the previously dominant "Magnificent Seven" tech stocks now appear to be lagging, indicating a shift in market leadership.