From Yahoo Finance: 2025-04-02 12:02:00

JPMorgan Chase & Co. believes beaten-down corporate bonds from automakers could rally after President Donald Trump’s tariff announcement. The autos sector is trading at its widest level versus the JPMorgan US Liquid Index since July 2020. The spread gap between the auto and pharma sectors is the widest since December 2023.

Manufacturers like General Motors, Stellantis, Hyundai, and Nissan could be impacted the most by the tariffs, with potential annual earnings hits of $1 billion to $4.4 billion. Meanwhile, pharmaceutical companies may not be well-positioned due to imported ingredients, making them a good hedge option, according to JPMorgan strategists.

Read more: JPMorgan’s Tariff-Day Trade Is Going Long on Automaker Bonds