istock.comTrade worries, which had been simmering, have returned to a boil after President Donald Trump surprised the market with a threat to increase tariffs on goods from China. Chipmakers including Advanced Micro Devices and Nvidia were also lower, as was Chinese online retail giant Alibaba. Also, it may be worth keeping in mind that Trump has a history of grandiose statements followed by something more practical. Consumer discretionary stocks are generally cyclical, meaning they tend to do better when the economy is performing more strongly. We’ll have to see whether the data continue to point to muted inflation even as the economy seems relatively healthy.

Source: Forbes May 06, 2019 13:41 UTC