Core Insights - The Federal Reserve cut interest rates by 25 basis points, marking the second cut this year, but investor sentiment remained low due to comments from Fed Chairman Jerome Powell regarding future rate cuts [1][5][10] Interest Rate Cut - The Federal Reserve's benchmark policy rate is now in the range of 3.75-4% following the quarter percentage point cut [5] - Powell indicated that while another rate cut in December is not ruled out, various factors need to be considered, leading to uncertainty among investors [6][8] Inflation and Labor Market - Inflation is nearing the Fed's 2% target, but concerns persist due to rising commodity prices influenced by tariffs [7] - The labor market is weakening, with fewer job additions, raising recession concerns, and the rate cut was primarily aimed at supporting this struggling market [8] Defensive Stock Recommendations - Defensive stocks from the utilities and consumer staples sectors are recommended to mitigate market volatility, including: - **Atmos Energy Corporation (ATO)**: Expected earnings growth of 8.1%, beta of 0.74, and dividend yield of 1.99% [9][10][11] - **CenterPoint Energy, Inc. (CNP)**: Expected earnings growth of 8.6%, beta of 0.57, and dividend yield of 2.23% [12][13] - **Duke Energy Corporation (DUK)**: Expected earnings growth of 7.3%, beta of 0.44, and dividend yield of 3.39% [14][15] - **Service Corporation International (SCI)**: Expected earnings growth of 8.8%, beta of 0.89, and dividend yield of 1.58% [16][17] Investment Strategy - The recommended investment strategy focuses on low-beta stocks with high dividend yields and favorable Zacks rankings to provide stability in a volatile market [4][10]