The benchmark indexes appear to be ending their first trading session of August in the green. However, given surging market volatility and the imminent threat of a rolling correction, investing in shares of industry leaders Johnson & Johnson (JNJ), Abbott Laboratories (NYSE:ABT), and Qualcomm (NASDAQ:QCOM), which have a stable performance history, could be a smart decision. Read on.The U.S. stock market has opened the first trading session of August in the green. Investors have lately been shrugging off concerns regarding the economic repercussions of the spread of the COVID-19 Delta variant. This is because the U.S. officially fully recovered from the pandemic in the second quarter with 6.5% GDP growth. Moreover, a recently approved bipartisan infrastructure bill proposal and the Fed’s unabated loose monetary policy are expected to keep the market bullish, offsetting concerns related to the resurgence of COVID-19.
Nevertheless, China’s crackdown on U.S. listings, and multi-year high inflation rates, are expected to remain the biggest drivers of market volatility. The CBOE Volatility Index has gained 5.7% over the past five days and 1.9% in the pre-market session today. And because analysts expect a rolling market correction to be on the horizon, we think investing in relatively stable industries such as healthcare and telecom, which have a history of thriving in bearish markets, could be a wise decision now.
Industry leaders Johnson & Johnson (JNJ), Abbott Laboratories (ABT), and Qualcomm Incorporated (QCOM) are well-positioned to gain substantially in the coming months, despite the market volatility.