Coca-Cola Shares Rise as Tariff Fears Drive Rotation Into Defensive Staples
Coca-Cola (KO) gained nearly 2% as trade tensions spurred a flight to defensive equities. The beverage giant’s stock outperformed broader markets, reflecting demand for resilient cash flows amid tariff uncertainty.
Investors pivoted from cyclical sectors to consumer staples ahead of key macroeconomic catalysts—February’s PCE inflation data and the Federal Reserve meeting will test whether this defensive posture holds. Coca-Cola’s upcoming earnings may reaffirm its pricing power in volatile conditions.
The rally lacked exuberance but carried conviction: trading volume surged as institutions reallocated capital. Global brands with inelastic demand profiles—like KO—remain favored shelters when trade winds shift.