In May, the US-China trade war escalated further after President Donald Trump increased tariffs on Chinese goods worth $200 billion, and China retaliated by increasing tariffs on US imports worth $60 billion. In May, these trade tensions took a toll on investors’ sentiments and drove FAANG stocks’ worst monthly performances in 2019 so far.
Are FAANG stocks turning positive in June?
In May, Facebook, Apple, Amazon, Netflix, and Google’s parent, Alphabet, slipped 8.2%, 12.8%, 7.9%, 7.4%, and 7.7%, respectively.
In contrast, FB, AAPL, AMZN, and NFLX have risen 6.5%, 10.7%, 6.3%, and 2.1%, respectively, in June so far, while Alphabet has fallen a marginal 1.1%.
Will FAANG stocks rise?
In the first week of June, most FAANG stocks were primarily driven by the broader market rally after Federal Reserve Chair Jerome Powell hinted at a near-term rate cut on June 4.
The central bank will announce its decision on rate hikes tomorrow at the end of a two-day June policy meeting. If the Fed keeps the interest rate unchanged tomorrow, it could hurt investors’ sentiment and drive the broader market lower—including FAANG stocks.
Any negative update related to the ongoing US-China trade war could keep FAANG stocks under pressure in the near term.