Tech stocks that were driving the market rally are now weighing on Wall Street, with a halt in the rally and bleeding sessions. Investor concerns over high valuations and market volatility are prompting a shift to defensive stocks like utilities.

Utility stocks like American States Water Company, Ameren Corporation, and Entergy Corporation are recommended for their low-beta status, high dividend yield, and favorable Zacks Rank. These stocks offer stability and potential upside amid market turbulence.

The decline in the Dow, S&P 500, and Nasdaq is led by tech giants like NVIDIA, Amazon, and Microsoft. Tech stocks, especially AI-focused companies, are under pressure due to concerns over capex plans, debt financing, and valuations amidst ongoing market volatility.

Investors are wary of high inflation, uncertainty over rate cuts, and other factors impacting market confidence. Tech companies investing heavily in AI are facing scrutiny over their financial strategies and valuations, leading to a shift in investor sentiment and market dynamics.

Read more at Nasdaq: 3 Low-Beta Utility Stocks to Navigate Through Market Volatility