Defensive stocks surge amid rising VIX and weak consumer sentiment, with Walmart e-commerce up 26% in Q1.
Walmart, Duke Energy, and McDonald’s outperformed as market volatility spiked, with the VIX rising 14% in a single session. Consumer sentiment fell to 44.8 in May, nearing recessionary levels, while the 10-year to 2-year Treasury spread tightened to 0.36%.
Walmart reported Q1 FY27 adjusted EPS of $0.66 on revenue of $175.68 billion, up 6.1% year over year. Global e-commerce sales jumped 26%, and U.S. comps rose 4.1% ex-fuel. Duke Energy posted its fourth straight earnings beat, backed by a $103 billion five-year capital plan. McDonald’s global comps turned positive at 4%, with loyalty program sales exceeding $38 billion annually.
The Sahm Rule remains below the 0.50 recession trigger, signaling a positioning trade rather than a crisis hedge. All three stocks generate steady cash flow in volatile markets.