From Morningstar: 2025-05-08 04:57:00

Investors should be wary of potential risks for the tech sector due to the US-China trade war. Apple plans to move iPhone production to India by 2026, signaling a shift in supply chains. A report highlights high-risk hardware, such as smartphones and PCs, facing tariff disruptions. However, software and cybersecurity industries may offer more stability.

Among hardware sellers, the smartphone and PC supply chains are at risk due to tariffs on China. Servers may be less disrupted, with Mexico and Taiwan as key sources. Motorola shows minimal China exposure. Software and cybersecurity industries are seen as lower risk. Companies like Palo Alto Networks and Adobe are recommended.

Software and cybersecurity industries may offer more stability amid tariff disruptions. Cybersecurity is predicted to benefit from increased spending, while software companies like Adobe and Microsoft may face less risk. Shopify could be at risk due to duty-free treatment removal, while Alphabet and Meta may see declines in revenue due to reduced ad spending by Chinese-based companies.

Market uncertainty in the tech sector may lead to volatility. Relief rallies may occur, but investors should be cautious of long-term impacts on global supply chains. Changing supply chains could lead to a recession, requiring a new playbook for investors to navigate the evolving risks. The article was compiled by Marissa Monson, who does not own shares in any mentioned securities. 1. The stock market hit record highs today, with the S&P 500 reaching 3,000 for the first time. Investors are optimistic about a potential trade deal with China, pushing stocks higher across the board.

2. A new study found that eating a Mediterranean diet can reduce the risk of heart disease by 30%. The diet, rich in fruits, vegetables, and olive oil, has long been associated with numerous health benefits.

3. The unemployment rate fell to 3.6%, the lowest in 50 years. The strong job market has led to increased consumer spending and economic growth, signaling a healthy economy.

4. Scientists have discovered a new species of dinosaur in Argentina. The Chubut Stegosaur, a herbivore with large plates on its back, roamed the earth around 140 million years ago.

5. A groundbreaking new treatment for Alzheimer’s disease is showing promise in early trials. The drug, designed to target the buildup of toxic proteins in the brain, has been successful in slowing the progression of the disease in mice.



Read more at Morningstar: Trump Tariffs Still Loom Large Over Tech Stocks