Global Markets Volatile on Trade Tensions, Tariffs

Global and U.S. markets have experienced heightened volatility due to renewed trade tensions, particularly stemming from U.S.-China negotiations and the Trump administration's introduction of new steel tariffs. These developments have caused notable sector swings, impacting steel and banking stocks in the U.S. and causing sharp declines in Indian indices, though FMCG and PSU bank stocks in India have shown resilience supported by policy changes and strong economic data. Despite the turbulence, the S&P 500 outperformed in May amid hopes for trade deals and lower inflation. Growth stocks such as AppLovin, Amphenol, Intuit, Carvana, and Stantec are recommended for June due to strong fundamentals, with Nvidia and TSMC leading the AI and semiconductor sectors. Not all cash-rich or small-cap companies are seen as attractive, with some facing profit challenges, while others like Fiverr and Tecnoglass stand out for robust growth. Investors are encouraged to focus on companies with solid growth prospects, efficient capital use, and exposure to high-growth areas such as AI.