So when will cops don RM30m bodycams? Kepong MP asks after UM student’s court discharge over controversial recording of police raidThe S&P 500 is down about 4 per cent since the Federal Reserve's hawkish interest rate projections last month sent US yields to 16-year peaks and accelerated an equities pullback from highs reached in late July.
Such areas are often referred to as “bond proxies” for their strong, stable dividends, which over the past decade have usually exceeded Treasury yields. Those hefty payouts, as well as businesses perceived to be more durable during a rocky economy, led many investors to view them as a safe harbor when markets grew turbulent.
Other areas known for their dividend appeal have also suffered, with real estate off 8 per cent since the Fed's meeting, and telecom stocks AT&T and Verizon dropping 7 per cent and 8 per cent, respectively. Bond proxies were underperforming after yesterday's US employment report showed jobs growth surging above expectations and the yield on the benchmark 10-year Treasury shot up over 4.8 per cent. Next Thursday's consumer price index report will be critical for investors assessing whether the Fed will seek to raise rates further to fight inflation.
Earnings may not provide much relief for utilities. While the sector is expected to see stronger growth than the overall S&P 500 in the third and fourth quarters, its projected 8.6 per cent increase in 2024 lags the expected 12 per cent rise for the overall S&P 500, according to LSEG IBES.