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U.S.-China Trade Tensions: Key Developments
On Friday, the S&P 500 and Nasdaq dropped over 2% amid renewed tensions between the U.S. and China, following President Trump’s announcement to impose an additional 100% tariff on Chinese goods starting November 1st. This decision was influenced by China’s reported “extraordinarily aggressive” stance in ongoing trade negotiations, specifically regarding new export controls on U.S. goods.
Market Response and Defensive Stocks
Amid the volatility, investors are gravitating towards defensive stocks. Notably, Gilead Sciences (GILD) and Johnson & Johnson (JNJ) are both near their 52-week highs and have gained over 25% year-to-date, supported by strong drug pipelines and dividend yields of approximately 2.7%, exceeding sector averages. Similarly, Kroger’s (KR) stock is up 13% in 2025, sustaining investor interest due to its value and earnings potential.
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