A number of stocks fell in the afternoon session after China imposed a 34% tariff on all U.S. imports amid escalating trade war tensions. This was partly in response to the "reciprocal tariffs" announced by the Trump administration the previous day, with levies on Chinese goods estimated to be as high as 50%.
Sea has had an impressive run over the past six months. While the S&P 500 has been flat, the stock has returned 38.6% and now trades at $130.68. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Large-cap stocks usually command their industries because they have the scale to drive market trends.
The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task.
