Thursday’s historic stock sell-off created a buying opportunity for investors. The indices fell the most in a day which is comparable to the Covid days of 2020. Nasdaq (QQQ) lost 5.97%, S&P 500 (SPY) fell by 4.84%, and Russell 2000 (IWM) lost 6.42%.
Stock markets are pricing in the risk of a recession. This would lower investment volumes, hurting banks. Bank of America (BAC) at $37.22 (-11.06% on Thursday), is worth considering. JPMorgan (JPM) is a safer bet, too. The firm is twice the size of that of BofA.
Apple (AAPL) lost 9.25% to close at $203.19. The stock has not traded below $200 since last June 2024. After Trump imposed severe tariffs that included China and Vietnam, Apple iPhone demand will weaken in those countries. Costs for supplies sourced in those Asian nations might raise prices for U.S. consumers.
AAPL stock could fall back to $150 if the negative market sentiment continues for the next few weeks.
In the shoe apparel segment, Nike (NKE) closed at $55.58 on Thursday, down by 14.44%. Markets are worried that Nike product prices will rise. Goods made in Vietnam will cost more for U.S. consumers if Vietnam imposes counter-tariffs.
In this sector, consider On Holdings (ONON) and Adidas AG (ADDYY). They currently trade at a premium, so wait for them to pull back before starting a position.