WS #16624
As growth stocks falter, capital is rotating into defensive sectors with stable cash flows. Mondelez reported a surge in Q3 profits driven by volume-led growth and successful price hikes, while SoFi beat earnings expectations across the board. Analyst commentary suggests that despite the tech selloff, big tech valuations are historically cheap, but the immediate market preference is for safety, evidenced by the relative outperformance of staples and financials over the tech-heavy Nasdaq.
Defensive Resilience & Consumer Staples
As growth stocks falter, capital is rotating into defensive sectors with stable cash flows. Mondelez reported a surge in Q3 profits driven by volume-led growth and successful price hikes, while SoFi beat earnings expectations across the board. Analyst commentary suggests that despite the tech selloff, big tech valuations are historically cheap, but the immediate market preference is for safety, evidenced by the relative outperformance of staples and financials over the tech-heavy Nasdaq.