From Yahoo Finance: 2025-04-20 09:20:00

The US stock market faced high volatility and negative returns in Q1 2025 due to tech stock uncertainties, economic data, and trade tensions. An AI software called DeepSeek from China caused global market upheaval, leading to US policy changes and trade tariffs against China.

US-China trade tensions escalated in 2025, with the US imposing tariffs to counter the impact of China’s DeepSeek AI. Tariffs reached 145% on Chinese goods, while China retaliated with 125% tariffs on US goods. Specific sectors like Technology, Automobiles, and Smart Phones received exemptions.

The Federal Reserve decided to maintain interest rates between 4.25% and 4.50% amid market volatility. Fed Chairman Jerome Powell emphasized the need for clarity before adjusting policy. The US economy is facing continuous stagflation, with the Cboe Volatility Index (VIX) at 32.64%.

Low-volatility stocks are outperforming the market in 2025, offering stability during uncertain times. Johnson & Johnson (JNJ) is a top low volatility stock with a 5-year monthly beta of 0.48 and 98 hedge fund holders. Despite ongoing legal and tariff challenges, JNJ maintains strong financial performance and consistent earnings.

JNJ ranks 9th among the best low volatility stocks to buy now, favored for stable returns and lower risk. While JNJ shows promise, AI stocks are seen as more lucrative for higher returns within a shorter timeframe. Investors seeking a promising AI stock at a discount can explore Insider Monkey’s report on the cheapest AI stock.

Read more: Is Johnson & Johnson (JNJ) the Best Low Volatility Stock to Buy Now?