Off The Charts

An unexpected escalation in the trade war between the U.S. and China jolted investors into a defensive position in May.

Safe-play sectors including utilities and consumer staples held up better than others and bonds gained ground this month as investors shifted their money into traditionally less risky holdings. Technology and other cyclical stocks pulled back after surging all year.

The trade tiff has upended a market rally. Technology companies are still showing a double-digit gain for the year, but they’re among the biggest losers in May. Industrial and consumer products companies also slumped as they warned of higher costs from tariffs.

Utilities and Treasurys have been acting as a safe haven in the day-to-day storm of news on the trade front. The jump in bond prices has pushed the yield on the 10-year Treasury to 2.24%, a 20-month low, as of Wednesday.