As Recession Odds Climb, Defensive Sectors Continue to Outperform

Both the NASDAQ and the Dow Jones Industrial Average entered correction territory last week (>10% decline from recent highs), signaling a broad equity pullback. The move is driven by an exodus from tech and other growth-focused names and is coinciding with signs that Main Street is beginning to feel the impact. Portfolio implication: favor more defensive positioning, trim growth exposure, and monitor consumer and economic data for further spillover-driven volatility.

Analysis

Both the NASDAQ and the Dow Jones Industrial Average entered correction territory last week (>10% decline from recent highs), signaling a broad equity pullback. The move is driven by an exodus from tech and other growth-focused names and is coinciding with signs that Main Street is beginning to feel the impact. Portfolio implication: favor more defensive positioning, trim growth exposure, and monitor consumer and economic data for further spillover-driven volatility.