This is what we usually think
1. Technology and Semiconductors (Tech Giants and Chipmakers)
This sector is highly dependent on both Chinese manufacturing and a massive consumer market in China. A successful deal would likely reduce the risk of tariffs and export controls.
Chipmakers: Companies that derive a significant portion of their sales from China, such as Nvidia (NVDA), Qualcomm (QCOM), Skyworks Solutions (SWKS), and Broadcom (AVGO). These stocks have historically been highly sensitive to US-China trade tensions.
Tech Giants: Large multinational technology companies with extensive manufacturing and sales presence in China, including Apple (AAPL) and Tesla (TSLA). Lower tariffs reduce production costs and increase market access.
2. Industrials and Manufacturing
Industrial companies, particularly those selling heavy machinery, are often caught in the crossfire of trade disputes. A successful deal could spur global growth and remove tariffs on key manufactured goods.
Industrial Goods: Companies like Caterpillar (CAT) and DuPont de Nemours (DD), which rely on Chinese demand for their products.
E-commerce/Retail: Companies that source a large volume of products from China, such as Amazon (AMZN) and major retailers like Nike (NKE), Starbucks (SBUX), and Walmart (WMT), stand to benefit from reduced tariffs and lower shipping costs.
3. Agriculture and Energy
A key component of past trade negotiations has often been an agreement by China to purchase large quantities of U.S. agricultural and energy products.
Agricultural Companies: Producers and sellers of farm equipment and goods like Deere & Co. (DE) could see a boost.
*Energy: Companies involved in the export of oil, gas, and liquid natural gas (LNG) could benefit from increased Chinese purchases.
4. Chinese Companies Listed in the U.S.
Successful talks often boost investor sentiment toward Chinese stocks listed in the U.S. (ADRs), as geopolitical risk decreases.
E-commerce/Cloud: Alibaba (BABA) and Tencent (TCEHY) could benefit from improved market stability and confidence.