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15 handpicked stocks

Defensive Plays For A Cooling Labor Market

The recent U.S. jobs report showed significantly slower growth than anticipated, signaling a potential economic slowdown. This situation could prompt the Federal Reserve to lower interest rates, creating a favorable environment for defensive stocks like consumer staples and utilities that offer stability and consistent dividends.

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Author avatar

Han Tan | Market Analyst

Updated 1 day ago | Published at Aug 5

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

XLP

Consumer Staples Select Sector SPDR

XLP

Current price

$80.47

FSTA

Fidelity MSCI Consumer Staples ETF

FSTA

Current price

$50.12

RSPS

Invesco S&P 500® Equal Weight Consumer Staples ETF

RSPS

Current price

$29.71

About This Group of Stocks

1

Our Expert Thinking

With the U.S. jobs report showing significantly slower growth than expected, we're seeing signs of economic cooling that could prompt Federal Reserve rate cuts. This creates an ideal environment for defensive investments that historically perform well during uncertain times and benefit from lower interest rates.

2

What You Need to Know

These are defensive stocks from sectors like consumer staples and utilities that provide essential goods and services. They typically offer consistent demand regardless of economic conditions, reliable cash flows, and steady dividend payments - making them attractive during periods of economic uncertainty.

3

Why These Stocks

Each asset was handpicked by professional analysts for its defensive characteristics and ability to weather economic slowdowns. These companies provide necessities like household products and electricity that people need regardless of the broader economic climate, offering potential stability when markets get choppy.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year.

If you invested across these assets:

in 12 months it could be worth:

$1,000.00

+17.21%

Group Performance Snapshot

17.21%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 17.21% over the next year.

3 of 15

Stocks Rated Buy by Analysts

3 of 15 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🛡️

Safe Haven Appeal

When economic uncertainty rises, smart money flows to defensive stocks that provide stability and consistent returns. These companies offer essential products that people need regardless of market conditions.

💰

Dividend Income Opportunity

Many of these defensive plays offer attractive dividend yields that could become even more appealing if interest rates fall. It's a chance to earn steady income whilst markets find their footing.

📉

Rate Cut Beneficiaries

If the Federal Reserve cuts rates to support the cooling economy, these dividend-paying defensive stocks could see increased investor interest as bond yields become less attractive.

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