Defensive sectors offer stability during market downturns because they produce essential goods and services that remain in demand regardless of economic conditions.
Wall Street ended the week on a strong note, with major indices posting their best weekly performance in years, as traders appeared confident that the escalation in the U.S.-China trade war — which led to triple-digit tariff increases on both sides — would be resolved in the near term.
U.S. stocks staged a broad-based rally on Monday, snapping a volatile losing streak after President Donald Trump hinted at a more diplomatic approach to tariff negotiations.
U.S. stocks surge after Trump hints at trade progress, easing fears of disruption. S&P 500 up 3%, tech-heavy Nasdaq 100 outperforms. Semiconductors lead sector rally.
The brokerage noted that the larger-than-anticipated tariffs could lead to demand destruction for steel companies but acknowledged that negotiations and potential rollbacks remain possible.
The brokerage described Steel Dynamics as a "best-in-class" domestic steel producer with a product mix that is well-aligned with the new trade measures.
