Defensive Stocks: Could Labor Market Cooling Help?
The recent surge in jobless claims to a nearly four-year high suggests the U.S. labor market is cooling, increasing the likelihood of Federal Reserve interest rate cuts. This scenario could create opportunities in defensive sectors like consumer staples and utilities, which tend to remain stable during economic slowdowns.
Top Picks from This Group
Here are a few of the assets in this group. Create an account to unlock the full list.
12 Month Growth Potential
Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.
If you invested across these assets:
In 12 months it might be worth:
+21.45%
About This Group of Stocks
Our Expert Thinking
With jobless claims hitting a nearly four-year high, the labour market is showing clear signs of cooling. This economic shift increases the likelihood of Federal Reserve interest rate cuts, creating a potentially favourable environment for defensive investments that can weather economic uncertainty.
What You Need to Know
These defensive stocks focus on essential sectors like consumer staples and utilities that provide goods and services people need regardless of economic conditions. Their stable demand patterns can offer more predictable revenues and consistent dividends during market volatility.
Why These Stocks
This collection was carefully curated by professional analysts to target sectors that historically perform well during economic slowdowns. Each asset represents companies providing essential services like food, household products, and electricity that maintain steady demand even when the economy cools.
Group Performance Snapshot
Average 12 Month Profit
On average, analysts expect assets in this group to grow 21.45% over the next year.
Stocks Rated Buy by Analysts
3 of 15 assets in this group are rated Buy by professional analysts.
Why You'll Want to Watch These Stocks
Economic Storm Shelter
When jobless claims surge and the economy shows signs of cooling, defensive stocks often become the safe harbour investors seek. These companies provide essentials that people need regardless of economic conditions.
Rate Cut Beneficiaries
As the Federal Reserve considers interest rate cuts to support the weakening labour market, defensive stocks with stable dividends could become increasingly attractive to income-focused investors.
Recession-Resistant Revenue
Consumer staples and utilities have historically shown resilience during economic downturns because demand for food, household products, and electricity remains relatively stable even when times get tough.
Get the full story on this Basket. Read our detailed article on its risks and potential.
Why Invest with Nemo Money?
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Opportunities
Consumer Sentiment Drop (Four-Month Low) Aids Retailers
A sharp drop in consumer sentiment to a four-month low indicates that households, especially lower and middle-income ones, are feeling financial pressure. This creates an investment opportunity in discount and off-price retailers, which stand to gain as consumers shift their spending to value-oriented stores.
Satellite Giants Unite: The Next Chapter for Europe
Three of Europe's top aerospace companies are nearing a deal to merge their satellite units, creating a €10 billion joint venture. This strategic consolidation is poised to bolster Europe's competitiveness in the global space race, creating opportunities for companies in the satellite technology supply chain.
Play Store Competition | Investment Opportunities
A court ruling has forced Google to open its Play Store to competitors, a major victory for Epic Games. This development creates an investment opportunity in companies poised to benefit from a more competitive app and payment ecosystem.
Frequently Asked Questions
Everything you need to know about the product and billing.