On Friday, Costco Wholesale Corp (NASDAQ:COST) showcased its defensive strength by trading flat amidst a significant market sell-off. The sell-off was triggered by a stronger-than-expected May jobs report, which indicated 172,000 new nonfarm payrolls, raising concerns about aggressive monetary tightening. This led to a surge in Treasury yields, with the 10-year yield reaching 4.54%, and caused the tech-heavy Nasdaq-100 to plunge 4.4%, marking its worst decline since October 2025. In contrast, Costco's membership-based revenue model provided a buffer against this volatility, as it generates a steady income stream largely insulated from economic fluctuations. With renewal rates consistently above 90%, Costco benefits from consumer behavior during economic stress, as households tend to seek out bulk goods at discounted prices. As a result, Costco is uniquely positioned to gain market share even when the economic outlook appears bleak, contributing to its stock's stability in turbulent times.