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The recently finalized trade agreement between the US and the European Union is ready to take advantage of the exporters of liquefied natural gas based in the United States, the “magnificent 7 technology giants” and the wider technology sector, according to market experts.
What happened: The deal, announced before the deadline on August 1, is seen as the removal of a key layer of uncertainty hung over the markets.
Lewis bentFounder and Chief Investment Officer of Navellier & Associates told Benzinga that exporters of liquefied natural gas such as Dorian LPG Ltd. as likely winners. He noted that “the community of analysts is reviewing the higher estimates of its profits” for these companies.
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A trade deal includes the EU’s commitment to buy $ 750 billion in the United States in three years and invest another $ 600 billion in the US economy.
Navellier also cited “Magnificent 7 and other major technology companies in the US” as beneficiaries, expecting that “the EU is expected to be more unochised to hit them with digital taxes” in the Donald Trump administration.
The impact of the agreement extends to the common fund in the United States. Chris ZarelliThe Chief Investment Officer of Northlight Asset Management told gas that it looked at the deal as “good for US markets as it eliminates some of the uncertainty that is overhanging the market and with a 15% rate is more than what is initially afraid.”
Prayer repeated the positive perspective on technology and emphasized the energy sector, saying that “it would be even more beneficiary because of the EU’s intention to buy more energy from the United States as a result of the new trade transaction.”
Although the deal brings clarity, some of the positive news may have already been included in stock prices. Zakarelli noted that “The news for this deal is” close “last week and some of the good news is probably already reflected in prices before the official announcement of today.”
Here is a list of beneficiaries of the energy and technology sector, underlined by experts;
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Energy supplies |
Ytd performance |
One -year performance |
Exxon Mobil Corp. (Nyse: xom) |
3.85% |
-4.01% |
Chevron Corp. (Nyse: CVX) |
6.52% |
-0.20% |
Occidental Petroleum Corp. (Nyse: oxy) |
-8.55% |
-24.31% |
EOG Resources Inc. (Nyse: eog) |
-2.45% |
-2.82% |
Marathon Petroleum Corp. (Nyse: mpc) |
23.54% |
1.65% |
CVR Energy Inc. (Nyse: CVI) |
52,93% |
6.69% |
Schlumberger NV (NYSE: SLB) |
-6.25% |
-24.78% |
Dorian LPG Ltd. (Nyse: lpg) |
18.02% |
-25.71% |
Energy Etfs |
Ytd performance |
One -year performance |
United States Oil Fund LP (NYSE: Uso) |
0.31% |
2.63% |
Proshares Ultra Bloomberg Raw Petrol (NYSE: UCO) |
-11.66% |
-16.09% |
SPDR S&P Oil & Gas Exploration & Production ETF (NYSE: XOP) |
-2.89% |
-8.66% |
Large technological stocks and ETF |
Ytd performance |
One -year performance |
Nvidia Corporation (Nasdaq: NVDA) |
27.79% |
58.39% |
Apple Inc. (Nasdaq: AAPL) |
-12.22% |
-1.92% |
Microsoft Corp. (Nasdaq: msft) |
22.44% |
20.10% |
Amazon.com Inc. (Nasdaq: AMZN) |
5.71% |
27.07% |
Alphabet Inc. (Nasdaq: goog) |
1.46% |
13.03% |
Meta Platforms Inc. (Nasdaq: Meta) |
19.76% |
54.09% |
Tesla Inc. (Nasdaq: Tsla) |
-14.16% |
40.28% |
Roundhill Magnificent Seven ETF (bats: mags) |
7.46% |
31.23% |
Why does it matter: Looking forward, experts believe that the deadline of August 1 is largely respected, providing more market security.