U.S. stocks showed some resilience in the second quarter, even as tariffs moved from rhetoric to reality.
The United States, China, the European Union, and others began erecting trade barriers during the quarter, causing investors to question the prospects for many multinational large-cap companies. Even so, the S&P 500 rose a modest 3.4% through June 28, 2018, led by growth stocks such as Facebook (FB), which rebounded from the Cambridge Analytica sell-off, and Netflix (NFLX), whose stock price has nearly doubled for the year to date. These giant caps diluted the impact of smaller index constituents such as Harley-Davidson (HOG), which gave back all of its June gains on the news that it is shifting some production overseas to skirt tariffs.
Tony Thomas does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.