From Nasdaq: 2024-04-11 10:51:45

After a strong first quarter, U.S. stocks have looked weak in April, with the S&P 500 Index gaining 10.2% in Q1, only to face a sell-off due to inflation data showing a 3.5% annual CPI increase. Fed members now want more signs of inflation coming down before adjusting rates.

Fears of rate cuts fading led to a market sell-off, with the Dow Jones losing over 400 points, and the 10-year Treasury yield surpassing 4.5%. Markets now anticipate no easing before September, adapting to a “higher for longer” scenario, after the Fed expressed uncertainty about inflation persisting.

Pfizer appears as a defensive stock option amid inflation concerns. The company looks attractive with a 6% dividend yield and optimistic growth prospects for Seagen revenues. Pfizer aims for $2 billion in cost savings by 2024 and reducing debt levels. Apple aligns as a “defensive tech stock,” given its history of outperforming during market weakness and strong buyback plans.

Apple demonstrates defensive potential as a tech stock, with good valuation support near 52-week lows. While lacking a substantial dividend yield, the company’s focus on stock buybacks adds value. Concerns over market share losses in China and antitrust issues seem factored in, with AI initiatives potentially driving future growth.



Read more at Nasdaq: 2 Defensive Stocks to Buy Now as ‘Higher For Longer’ Woes Rattle Markets