The relentless tariff hikes that the U.S. is imposing on China are only one of many major headwinds. The U.S. is limiting Nvidia (NVDA) chip sales to China and stacking fees on China-built vessels of up to $3 million per U.S. port call.
Temu, owned by PDD (PDD), cut its advertising in the U.S. in response. This hurts American firms like Alphabet (GOOG) and Microsoft (MSFT). Consumers will be less likely to see a Temu ad on YouTube or the Weather Network.
Investors should also watch Alibaba (BABA) and Jd.com (JD) as shares pull back further.
Watch out for Hertz (HTZ) after the stock gained 56.44% to close at $5.71. Pershing Square increased its position, revealing a 12.7 million share position. This accounts for 4.1% of the shares outstanding. The investment firm also has a big position in Brookfield, Restaurant Brands (QSR), Nike (NKE), and Alphabet (GOOGL).
AMD (AMD) fell in sympathy with Nvidia’s decline. The firm will take a write-down of up to $800 million. This is a result of “assessment of a new license requirement implemented by the United States government for the export of certain semiconductor products to China (including Hong Kong and Macau) and D:5 countries, or to companies headquartered or with an ultimate parent in such countries,”
Investors shopping for better value may consider Micron Technology (MU). Conversely, Marvell Technology (MRVL) still trades at a premium, so it may fall further.
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