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Defensive sectors rally as tech extends losses

So-called defensive sectors of the U.S. inventory marketplace jumped on Tuesday, while one of the most most well liked cyclical teams retreated and weighed on the major indexes. The top-gaining industry of the day was utilities XLU, +2.26% which jumped 2.2%, followed via telecommunications, up 1.3%. Real estate XLRE, +1.25% rose 1.2%. All 3 sectors are considered as defensive parts of the marketplace, which means they're seen as providing extra stability in periods of financial uncertainty. The 3 also offer dividend yields which might be some distance higher than the entire marketplace. The application sector has a yield of three.46% while the telecom yield is five.63% and real estate is at 3.42%. For the entire S&P 500, the yield is 1.82%. The U.S. 10-year Treasury notice currently yields 2.8%. The weakest sector of the day is technology, which fell 1.8%. The consumer-discretionary sector fell 0.6% on the day. Both had been favorite industries for investors this yr due to their top levels of enlargement; tech is up 3.8% up to now this yr while discretionary is up four%. The two are the one ones of the 11 S&P 500 sector teams in sure territory this yr. The Dow Jones Industrial Average DJIA, -0.24% rose 0.2% on Tuesday while the S&P 500 SPX, -0.61% is down 0.2% and the Nasdaq COMP, -1.66% fell 1.2%.