How Wall Street pros are looking at fears over a US economy slowdown

Published On Mar 2, 2025, 9:00 AM

Wall Street is currently concerned about a potential slowdown in the U.S. economy, driven by weak consumer confidence and spending reports. Many investors, including strategists from Interactive Brokers and Renaissance Macro, are debating the implications of economic indicators suggesting a growth scare. The market has seen a decline overall, particularly in technology-focused sectors, but there is also discussion of shifting toward defensive investments such as utilities and consumer staples, which may provide better stability in uncertain times. Despite fears of a recession, some analysts suggest that long-term views remain cautiously optimistic given potential Fed interventions.

Stock Forecasts

XLP

Positive

Given the fearful sentiment in the market, defensive stocks such as Consumer Staples (XLP) and Utilities (XLU) are likely to perform better as investors seek to minimize risk. These sectors are traditionally seen as safe investments during economic downturns.

XLU

Positive

Utilities (XLU) might also see increased investment as they are considered low-risk assets, which typically perform well in tougher economic conditions. With the current economic uncertainty, they could provide solid returns compared to more volatile sectors.

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