Weekly Digest - April 21st
After one of the biggest rallies since 2008 last week, markets have reversed course, with the S&P 500 declining by around 4% this week. Tariffs continue to weigh heavily on sentiment, with fears of a global trade war increasingly becoming a reality. Reflecting this uncertainty, JPMorgan’s team of economists, led by Bruce Kasman, raised the probability of a global recession to 60%. The bank also revised its full-year US GDP forecast to -0.3%, down from +1.3%.
Global tensions remain high, as the US and China remain locked in a tariff-driven chess match. The US recently imposed a 145% tariff on Chinese goods, to which China retaliated with a 125% tariff on US imports. China also warned it would take action against countries siding with the US in ways that harm its interests.
President Trump defended the tariffs, arguing they would encourage Americans to buy domestic products, increase tax revenue, and boost investment. However, critics argue that reshoring manufacturing is complex, could take decades, and might leave the economy vulnerable in the short term.
While trade tensions and economic uncertainty are likely to drive short-term volatility, long-term investors should stay focused on defensive stocks and resilient business models. In today’s analysis, we’ll show you how to use Streamlined Finance to discover stocks that are rising even in turbulent times.
Top Gainers This Week
Eli Lilly’s (NYSE: LLY) shares rose by around 8% following positive Phase 3 trial results for its oral weight-loss drug. The pill showed strong results in both weight reduction and blood sugar control, putting it ahead of competitors like Pfizer (NYSE: PFE) and Novo Nordisk (NYSE: NO) in the race for the first GLP-1 pill for weight loss.
Netflix (NASDAQ: NFLX) is another gainer this week, with the company’s shares rising by around 6% after reporting better-than-expected earnings. The company has continued to deliver, turning around its fortunes from a cash-burning company to one delivering billions of dollars in profit and free cash flow. Moreover, it remains largely unaffected by the current tariff environment.
Top Losers This Week
Unitedhealth (NYSE: UNH) shares tumbled around 28% in the past week, marking the company’s worst single-day performance since 1998 in the past week. The company missed earnings expectations and lowered its outlook for the full year due to higher-than-expected medical costs, triggering a sell-off of the stock that further spread to other companies in the healthcare sector.
From the Mag-7, NVIDIA (NASDAQ: NVDA) shares fell by around 12% following new US export restrictions on its H20 AI chips to China, expected to cost the company $5.5 billion in Q1 revenue. CEO Jensen Huang remains hopeful of continuing business in China, despite rising tensions.
Meta (NASDAQ: META) is another company from Mag-7 that saw a drop in its share price by around 9% due to growing concerns about new trade tariffs and their expected impact on the digital advertising industry, where Meta holds a significant market share.
Stocks in Focus
Investors should stay tuned as key earnings reports are expected this week from TESLA (NASDAQ: TSLA), Alphabet Inc. (NASDAQ: GOOGL), Intel (NASDAQ: INTC), Procter & Gamble (NYSE: PG), International Business Machines (NYSE: IBM) and Service Now (NYSE: NOW).
With the market being volatile, it’s important to focus on outperformers. Our Find Stocks page can help you identify top gainers based on share price momentum. Over the past 6 months, standout performers include Palantir Technologies (NASDAQ: PLTR), MicroStrategy (NASDAQ: MSTR), and App Lovin (NASDAQ: APP).
