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Investors Are Moving Into Safer Stocks as Recovery Rally Slows

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Investors Are Moving Into Safer Stocks as Recovery Rally Slows

Published: by Omor IE

Key Points

  • Safer and more “boring” sectors have been doing better than usual today.

  • Investors seem to be de-risking portfolios as Treasury yields have gone up slightly.

  • Other smaller companies have made big moves in both directions in the meantime.

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The stock market has seen a stellar recovery rally over the past few weeks due to trade tensions cooling down. We seem to be on the road to de-escalation, but this may not be enough to prevent some aftershocks from rattling the economy in the coming months.

Moody’s recent downgrade of the U.S. credit rating didn’t knock down the stock market, as the S&P 500 still closed green on Monday. However, this may have prompted some investors to seek shelter in safer sectors.

S&P sectors like utilities, consumer staples, and healthcare are still green as the rest of the market has seen a slight decline today. This is as Treasury yields have headed higher, and the Japanese 40-year bond yield soared to an all-time high of 3.6%. Higher yields in Japan could lead to reduced investment in U.S. Treasuries and other foreign bonds.

Here’s a market update as of 11:30 AM (ET) today.

  • The S&P 500 is down 15.8 points, or 0.26%.
  • The Nasdaq Composite is down 75.74 points, or 0.39%.
  • The Dow Jones Industrial Average is down 62.05 points, or 0.15%.

Green Spots In the Market

The broader market is mostly in the red today, albeit slightly. However, some big-name companies have still gained.

  • Eversource Energy (NYSE: ES) is up 3.8%.
  • First Solar (NASDAQ: FSLR) is up 3.7%.
  • Dollar Tree (NASDAQ: DLTR) is up 2.8%.
  • Dominion Energy (NYSE: D) is up 2.4%.
  • Deckers Outdoor (NYSE: DECK) is up 2.12%.

DG, NEM, MRNA, ULTA, and ENPH are also up in the low single digits.

Notable Losers Today

  • TSS Inc. (NASDAQ: TSSI) is down 15.5% as it is cooling off from a triple-digit rally in the past month.
  • ASP Isotopes (NASDAQ: ASPI) is down 14.8%. It is also cooling down from a significant rally.
  • Schrodinger (NASDAQ: SDGR) is down 12.1%. It recently appointed a new CFO after the old CFO quit.
  • IHS Holding (NYSE: IHS) is down 11.3% despite EPS beating estimates by $0.02 and revenue topping estimates. This is because the company’s revenue guidance came in below analyst consensus at the midpoint. It sees FY 2025 revenue between $1.68 billion and $1.71 billion vs. the $1.7 billion consensus.
  • Newsmax (NYSE: NMAX) is down 8.3%.

YALA, EXP, TCOM, DGNX, VIPS, AEVA, GLXY, OKLO, VIK, and BROS are all down in the mid-single digits.

Notable Winners Today

  • SatixFy Communications (NYSEAMERICAN: SATX) is up 42.7% after an amended merger agreement with MDA Space. Under the new offer, MDA will be paying $3 in cash per share vs. $2.1 per share earlier.
  • D-Wave Quantum (NYSE: QBTS) is up 29.6% after it announced the general availability of its Advantage2 quantum computer.
  • Agilysys (NASDAQ: AGYS) is up 22.6% after solid FY 2025 Q4 earnings. Revenue surpassed analyst estimates, and its price target was raised to $105 by Needham.
  • Amer Sports (NYSE: AS) is up 16.4% after its Q1 report beat analyst estimates, and guidance was raised.
  • Sealsq (NASDAQ: LAES) is up 11.8% due to the quantum computing sector doing well today.

The image featured at the top of this post is ©mezzotint / Shutterstock.com.

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