Bank of America has reshuffled its sector outlooks, raising Utilities to "overweight" while downgrading Energy to "market-weight."

The changes come as elevated volatility and policy uncertainty drive a recalibration of investment strategies. According toSavita Subramanian, Bank of America's head of U.S. equity strategy, the shifting economic and political landscape has altered the risk-reward profiles of these key sectors.

Utilities: Defensive Hedge With Growth Potential

Subramanian argues that Utilities, as tracked by theUtilities Select Sector SPDR Fund(NYSE:XLU), long regarded as a defensive sector, have become increasingly attractive in the current rate environment.

As...