Equity performance this week depicted a tale of two very different markets, and one trade preserved against the turbulence: playing defense. Technology stocks sold off rapidly as growth scares resurfaced on Wall Street following a swath of weak labor market data. That sent shockwaves across equities, pummeling some of 2024's leading artificial intelligence names. The Nasdaq Composite tumbled more than 2%, while all the Magnificent Seven stocks notched losing weeks.
Stocks tied to industry also lagged as economic worries and fears of a behind-the-curve Federal Reserve rattled investors. A slew of industrials, materials and financial stocks finished lower, with Caterpillar and JPMorgan Chase shedding about 7% and 5% this week, respectively. Defensive stocks such as consumer staples and utilities, however, provided a safe haven for investors, buoyed by gains from Procter & Gamble , Colgate-Palmolive and Philip Morris International .