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Betting On The Trade War: 3 Stocks That Could Win If Global Tensions Intensify

1. Trump threatens 100% tariffs on foreign semiconductors, impacting market dynamics. 2. ON Semiconductor positioned well with domestic fabs amid rising trade tensions. 3. Lockheed Martin benefits from increased defense spending in uncertain geopolitical environment. 4. Palantir's valuation is high; it may benefit from government contracts in trade war. 5. High geopolitical chaos expected; three stocks have resilience in current market.

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FAQ

Why Bullish?

The threat of tariffs may encourage domestic manufacturing stocks to rise, similar to 2018. Historical instances show that increased defense spending and local manufacturing can lead to price increases in relevant sector stocks.

How important is it?

The article addresses shifts in trade policy and their implications for the semiconductor and defense industries, which are significant market sectors represented in the S&P 500. Changes in these areas can have immediate and far-reaching impacts on investor sentiment and stock performance.

Why Short Term?

The immediate impact of trade tensions is likely to drive stock prices in the short-term, as the market reacts to tariff announcements and associated geopolitical shifts. Past examples, like the early 2018 tariffs on steel and aluminum, show quick market reactions within weeks.

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