The rising global trade tensions have continued to hit both the Chinese and U.S. stock markets. The Shanghai Composite is down near a 2-year low and nearly 20% since January of this year, while the Dow rose 30.31 points, or 0.1%, to 24,283.11, closing below its 200-day moving average for the second straight session.
For other benchmarks, the S&P 500 gained 0.2%, closing at 2,723.06, and the Nasdaq Composite Index (IXIC) added 29.62 points to 7,561.63, moving 0.4%.
Yet, many investors are finding safe haven within tech companies, specifically FANG (Facebook, Apple, Netflix, and Alphabet) stocks. Although FANG stocks suffered sell-offs earlier today, all but Alphabet have rebounded, with Facebook (FB), Apple (AAPL), and Netflix (NFLX) up 1.35%, 1.24%, and 3.88%, respectively. The case is similar for the FANG type stocks in China—Baidu, Alibaba, JD.com, and Tencent Holdings—which are outperforming when compared to the rest of the market.
Related: Despite Trade War Talk, FANG Stocks Still Packing Punches
Dan Niles, founding partner at AlphaOne Capital Partners, believes that the reason for FANG resilience amid the trade tensions is likely because companies such as Google, Netflix, and Facebook do not operate heavily in China to begin with due to government restrictive business policies.
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