Fed governors may dissent against Powell amid Trump pressure - WSJ’s Timiraos
Investing.com -- Shares of major telecommunications companies Verizon Communications Inc (NYSE:VZ), AT&T Inc (NYSE:T), and T-Mobile US Inc (NASDAQ:TMUS) are on the rise, with Verizon up 2.2%, AT&T climbing 1.7%, and T-Mobile increasing by 2%. The sector is drawing investor interest as market participants shift their strategies towards historically defensive sectors amid rising market uncertainty fueled by ongoing tariff disputes and broad economic concerns.
U.S. President Donald Trump unveiled global reciprocal tariffs on Wednesday of 10% on all imported goods, with higher rates for some nations that will be equivalent to half of the rates they levy on the U.S. Markets on Thursday have plunged into turmoil in response, as a global trade war seems to be well underway.
The telecommunications sector, known for its defensive investment characteristics, has become a focal point for investors seeking stability and reliable yield. The essential nature of telecommunication services ensures demand for connectivity remains relatively stable, even during economic downturns. This results in consistent revenue streams for major carriers, which are often based on recurring monthly subscriptions.
Verizon and AT&T, in particular, have seen double-digit growth over the past three months, underscoring the sector’s resurgence. Their established presence and appealing dividend yields make these telecom giants attractive as potential defensive anchors for portfolios navigating the current economic landscape. The reliable income stream and the buffer against share price declines provided by these companies’ dividends are especially valuable when market appreciation is uncertain.
The appeal of the telecommunications sector is not new; it is traditionally seen as a haven during times of economic turbulence. This is reflected in the historical trend of capital flowing toward telecommunications during periods of market anxiety. The current movement in Verizon, AT&T, and T-Mobile shares suggests that investors are once again turning to these familiar names for their portfolio stability and consistent dividends.
With the market grappling with various challenges, the telecommunications sector’s ability to offer both stability and yield is likely to continue to attract investor attention, particularly if economic headwinds persist.
In today’s trading, the Nasdaq has fallen 5.8%, the S&P 500 is down 4.8%, and the Dow Jones is down 3.9%. Telecom (BCBA:TECO2m) stocks have been one of the very few bright spots as investors have panic-sold on U.S. President Donald Trump’s Wednesday reciprocal tariff announcements.
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