April 19, 2024, 2:47 pm EDT
Breaking Down
The stock market cannot handle more wars as Israel began to fight back against Iran after hundreds of missiles and drones were attacked last week. Technology stocks that occupied the Nasdaq index were hit hard by falling more than -2% as of now. Although the Dow Jones index can stay positive at this moment, it is because of the help from the financial, energy, and commodity sectors. In our opinion, they are also vulnerable if the conflicts keep spreading out longer and stronger.
The semiconductor industry got hit hard: SMCI -22%, NVDA -9%. AMD -6%. The mega technology also retreated fast: META -4%, MSFT -1%.
But, there are a few stocks that emerged during this special background: SJM +3% (food), BG +3% (seed), KMI +3% (pipeline), and WBA +3% (healthcare retailer). Those stocks resisted the wind and could be winners during the bear markets that are worth attention.
However, it is important to note this bull market began in March 2009 and lasted more than 15 years, The coming bear market could be harsh and fatal. Everyone should be prepared for it.
