Stocks’ Path Toward Records Led by Defensive Plays

Utilities stocks, real-estate investment trusts and other bets that tend to do better when investors are wary of volatility are outperforming the broader market

Hopes for a trade deal have sparked renewed optimism among stock investors. It is a cautious optimism, though.

The S&P 500 is less than 2% away from its all-time high after rallying Friday on reports that the U.S. and China reached what President Trump described as a “phase one” agreement. With its 18% rise in 2019, the index is outperforming benchmarks from Europe to Brazil to Japan.