Traders' attention to the defensive stock's safe-haven status is insufficient under the Middle East conflict.

Gate News bot reports that, according to Bloomberg, in the context of escalating geopolitical tensions, U.S. stock market investors are reluctant to seek safe havens, and if there is an unexpected turn in the conflict between Israel and Iran in the coming days, they may be caught off guard.

Typically, this level of anxiety is sufficient to prompt fund managers to rush into stocks that provide safe-haven assets, especially as President Donald Trump weighs whether to offer military support in the conflict between Israel and Iran. This move could disrupt crude oil prices, raise concerns about inflation, and potentially reignite investors’ appetite for safe-haven investments.

However, the events since last week have only prompted investors to slightly shift towards so-called defensive sectors such as utilities, consumer staples, and healthcare. Nonetheless, the US stock market continues to experience a bumpy rise, with the S&P 500 index just 2.7% away from setting a new all-time high.

For Matt Maley of Miller Tabak + Co., this is an ominous sign, as investors are easily shaken given the tumultuous situation.

The company’s Chief Market Strategist stated: “This war may escalate, or it may not, but given the high valuations that limit the upside potential of the stock market, investors should take more precautions.”

Todd Sohn of Strategas has found that the influence of defensive sectors on the benchmark index (measured by the total weight of each sector in the index) is currently at its lowest level in 35 years, highlighting an increase in the safety of recent off-market stocks.