From Yahoo Finance: 2025-04-06 16:44:00

The US stock market faced a turbulent Q1 of 2025, with increased volatility and negative returns due to concerns over tariffs, economic data, and tech stock performance. DeepSeek AI’s emergence from China caused global market shockwaves, prompting US tariffs against Chinese firms.

In response to DeepSeek AI’s threat, the US government implemented policies to support US-listed tech firms while mitigating the impact of the AI. The uncertainty of the US economy grew as the Federal Reserve maintained interest rates, affecting sectors like banking and leading to market volatility.

President Trump’s announcement of further global tariffs on Europe and China led to retaliatory measures, escalating investor concerns. The US imposed 54% tariffs on Chinese goods, prompting China to retaliate with 34% tariffs on US goods, causing market indexes to plummet and raising supply chain concerns.

The US economy is facing “continuous stagflation,” with high inflation, low growth, and high unemployment. Investors should consider investing in sectors like energy, real estate, healthcare, finance, and tech for stability. Hedge funds’ top stock picks have historically outperformed the market, offering potential returns.

Alphabet Inc. (NASDAQ:GOOGL) is a top tech company with a strong financial profile, boasting revenue of $96.47 billion, operating income of $31 billion, and net income of $26.5 billion. The company’s investments in AI, self-driving vehicles, YouTube, and Android make it a compelling stock for beginners to watch.

Alphabet Inc. (GOOGL) ranks 3rd on the list of best beginner stocks. While GOOGL shows promise, AI stocks offer higher potential returns in a shorter time frame. Consider exploring AI stocks for greater growth opportunities. Check out a report on the cheapest AI stock for potential investment opportunities.

Read more: Is Alphabet Inc. (GOOGL) the Best Beginner Stock?