Health Care and Consumer Staples Lead as Investors Rotate Into Defensive Sectors

While the broader market slid Wednesday, health care rose about 2.4% and consumer staples about 2.2%, the two best-performing S&P 500 sectors. Energy also gained 0.65%. Among drug makers, AstraZeneca gained 4.3%, Merck 4.1%, Eli Lilly 3.9% and Pfizer 3.9%.

The move came as a hotter inflation reading and rising yields weighed on growth and small-cap stocks. Defensive sectors with steady demand tend to attract buyers when rate-hike fears rise.

Staples companies such as grocers, beverage makers and food producers benefit from that dynamic, though persistent inflation can also squeeze their costs.