Investors betting that the White House will reverse its trade policies might trade the magnificent seven. Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOG) have the best long-term prospects. Expect near-term volatility to worsen as markets price in the risk of a slowdown in companies investing in artificial intelligence solutions.
Tesla (TSLA) is a binary bet. The stock closed at $227.50, re-testing lows established in March. Few investors expect Tesla to post good automobile unit sales. The boycott hurt the brand’s appeal globally. Sales in Europe and Canada will likely fall by more than expected. Tesla will post earnings after the markets close today.
Blackstone (BX) lost 7.8% on Monday. Asset management firms are unappealing when stock markets fall. They will attract fewer investors, face higher redemptions, and will collect less fee revenue in the quarter. Similarly, Blackrock (BLX), KKR & Co. (KKR), Brookfield Asset Management (BAM), and Brookfield (BN) face lower revenue growth risks.
Vistra (VST) lost 7.71% to close at $106.52. Electricity demand is falling as AI-related server usage declines. Constellation Energy (CEG) is also at risk of closing at fresh 52-week lows. CEG stock fell by 6.81% to close at $192.61.
In the retail sector, Dollar General (DG) continued its uptrend. Shares bottomed at $66.43 in January and closed at $95.61. Despite its reliance on Chinese-made goods, it has around 10% in inventory, potentially facing higher costs from tariffs. Fortunately, the struggling consumer will increase demand for Dollar General’s goods.
