US equity markets continued last week’s sell-off into Monday. However, there was a relief rally yesterday as the S&P 500 (SPY) gained 0.80%. Apple (AAPL), which had plunged on Monday after the Supreme Court ruling, recovered some of its lost ground and gained 1.6% yesterday. NVIDIA (NVDA) and Advanced Micro Devices (AMD) rose 4.1% and 2.3%, respectively. Microsoft (MSFT) also gained 1.1%.
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Meanwhile, after China retaliated against US tariffs, we could see President Trump tighten the screws further. Reuters reported that “President Donald Trump is expected to sign an executive order this week barring U.S. companies from using telecommunications equipment made by firms posing a national security risk, paving the way for a ban on doing business with China’s Huawei.” Separately, Reuters reported, “A group of President Donald Trump’s fellow Republicans in Congress introduced legislation on Tuesday intended to prohibit anyone employed or sponsored by the Chinese military from receiving student or research visas to the United States.”
Other ways to retaliate
After imposing tariffs on billions of dollars of each other’s goods, the United States and China might look at other ways to retaliate as both the sides show no intention of backing away from the trade spat. China went ahead with increasing tariffs on US goods despite President Trump’s warning.
To be sure, Huawei was a flashpoint in US-China relations after Huawei’s CFO was arrested in Canada. China retaliated by arresting several Canadian citizens. While markets bounced back yesterday, it seemed like more of a relief rally. The prospects of further escalation in US-China trade war is still a potent risk for markets. If the trade war escalates further, it could fuel risk-off sentiments, and markets could come under pressure.
Analysts have mixed opinions on JetBlue Airways (JBLU) in the near term.
After opening on a bearish note on Wednesday, Tesla (TSLA) was trading with 4.8% losses for the day, near $195.25 at 1:16 PM ET.
With voting conducted in seven phases panning six weeks, India’s (EPI) elections have been a grand affair—to say the least. Tomorrow is the day of the results.
Qualcomm (QCOM) stock fell more than 10% in the first half of trading on May 22 after it lost its licensing lawsuit with the US FTC (Federal Trade Commission).
Apple (AAPL) suffered a setback recently when the US Supreme Court allowed an antitrust lawsuit against the company to proceed.
Today doesn’t seem to be a good day for electric vehicle companies. Earlier today, NIO stock hit an all-time low of $4.00.
The cannabis sector has been struggling to find direction on May 22, with cannabis stocks trading on a largely mixed note in the first half.