Weekly Digest - April 14 th
Markets have been on a rollercoaster ride this month, declining around 10 percent in the first week of April and gaining approximately 7 percent in the current week. Tariffs remain a major concern for investors across the globe, with many worried that they could trigger a global trade war and push the US economy to the brink of a recession. However, there appears to be some respite for investors in the short term as the Trump administration announced a 90-day pause on most of the proposed charges, leading to the S&P 500’s biggest rally since 2008.
Meanwhile, the US and China continue their trade chess match. The latest US tariff on Chinese goods has jumped from 104 percent to a whopping 125 percent. China hit back fast, slapping tariffs of 84 percent on US imports. Neither side is holding back. To make matters more intense, the European Union has joined the party, announcing it will begin collecting retaliatory duties on US imports. A global tariff war appears to be on the horizon.
Due to frequent policy changes, investor sentiment remains cautious, and markets are expected to stay volatile in the near term. As a result, several Wall Street analysts, including Bank of America, Evercore ISI, Oppenheimer, and JPMorgan Chase have slashed their S&P 500 Forecasts before the announcement of the tariff pause.
Top Gainers This Week
Electronic stocks have been in focus following the announcement that smartphone and laptop imports into the US will not be subject to the newly proposed “reciprocal tariffs.” Apple (NASDAQ: AAPL) was the biggest beneficiary, as a significant portion of its products are manufactured in countries like China and Vietnam. Apple’s share price rose by around 12 percent this past week.
Dell (NASDAQ: DELL) also surged, gaining around 14 percent after news of the tariff pause on electronics.
From the Mag-7, NVIDIA (NASDAQ: NVDA) is another stock on the rise with the company’s share price increasing by around 13% in the past week. The company depends heavily on AI chip imports from Taiwan, so the tariff pause is a major win.
PDD Holdings (NASDAQ: PDD) also saw gains, with its shares rising around 6 percent on Monday. This move appears to be driven by an attractive share price and improving financials, rather than tariff news. With a P/E ratio of 2.92 and a P/S ratio of 1.17, the company may present a strong buying opportunity.
Top Losers This Week
Retail and fashion companies struggled, with shares of Lululemon (NASDAQ: LULU) falling around 2 percent and Nike (NASDAQ: NKE) down by approximately 0.36 percent. Rising input costs from tariff and intense competition are weighing heavily on the sector.
Pfizer (NYSE: PFE) also saw its share price decline by about 2.2 percent this week. However, despite the drop, the company appears attractive from a valuation standpoint, with a low P/E ratio and solid financials. It is also outperforming its peer, GlaxoSmithKline (NYSE: GSK), in several key metrics.
Stocks in Focus
The coming week could bring more surprises, with major companies like Bank of America (NASDAQ: BAC), Johnson & Johnson (NYSE: JNJ), Netflix (NASDAQ: NFLX), Taiwan Semiconductor Manufacturing Company (NYSE: TSM), and UnitedHealth Group (NYSE: UNH) expected to announce their earnings.
For investors thinking years ahead, current dips in well-run companies might just be the entry points they were waiting for.