It's been a tough couple of months for the market. The S&P 500 and Dow Jones industrial average have fallen a respective 8 and 9 percent since the start of June. But in a market full of losers, one defensive sector has emerged as the winner: Utilities.
Of the 10 S&P 500 sectors, Utilities is the only one in the green this quarter, up more than 1 percent as recent global stock market turmoil and uncertainty over the Fed has investors running for safety. The sector is now pacing to track its first winning quarter since the start of 2015, and according to one strategist, the longer the Fed holds off on raising interest rates, the more utilities will rally.
"When you look at Fed policy there's a global economic component, a global risk component and a U.S. economic component and the global risk in economics is driving the bus right now," Larry McDonald told CNBC's "Power Lunch" on Wednesday. "If you look over the past year, when the Fed has pushed out the Fed rate hikes utilities have done quite well."