The Federal Reserve under new Chair Kevin Warsh has pivoted to a hawkish stance, with the dot plot now projecting a rate hike instead of a cut and futures markets pricing a 62% chance of tightening in September. The June jobs report, due Thursday, could harden that case if it shows continued labor market strength after May's 172,000 payroll gain. Goldman Sachs has scrapped its 2026 rate-cut forecast, and investors have rotated into defensive sectors like consumer staples and healthcare. Eli Lilly and Altria are highlighted as stocks that may benefit from this shift, with Lilly offering growth via its new oral GLP-1 drug Foundayo and Altria providing a 6% dividend yield and low volatility.
Eli Lilly and CompanyEli Lilly's new oral GLP-1 drug Foundayo is highlighted as benefiting from defensive rotation, implying strong product demand.
Altria GroupAltria's 6% dividend yield and low volatility make it attractive in a defensive rotation amid hawkish Fed stance.