Navigating Market Volatility: ExxonMobil and ‍General Motors

‌Updated May 28, 2025
⁢

U.S. stocks concluded a turbulent week wiht a sharp decline, influenced by inflation concerns, economic uncertainty, and trade war anxieties. ⁢The Dow Jones Industrial ⁤Average⁤ fell about 1%, the ‌S&P 500 slumped 1.5%, and​ the Nasdaq Composite declined 2.6%.

The Nasdaq is on pace for its worst monthly ‌performance since December​ 2022, potentially dropping more than 8% this month. Investors are awaiting key events this week, including an expected tariff declaration and the U.S.employment report for March,which is forecast to show 139,000 jobs added with the unemployment⁣ rate ⁢steady at 4.1%.

Federal Reserve Chairman⁣ Jerome Powell is also scheduled to speak. Interest‌ rate futures indicate a⁣ 79% ‌likelihood of a 25-basis-point rate cut by the Fed’s June meeting. Several companies, including Conagra Brands, Lamb Weston, RH, Guess, and PVH, are set to release ​earnings reports.

Amid market volatility, ‌analysts are pinpointing potential opportunities and risks. exxonmobil (XOM) appears well-positioned to benefit from current trade and energy‌ policies,⁢ while General Motors (GM) may face challenges due to new tariffs.

ExxonMobil: A Stock to Buy

ExxonMobil (XOM) is strategically positioned to capitalize on the ⁣administration’s trade and energy agenda. ‌tariffs on crude oil imports from Mexico and⁣ Canada, coupled with sanctions on Venezuelan oil, are expected to tighten global crude markets and ​boost domestic production.

With crude prices potentially ⁤rising,ExxonMobil’s domestic operations stand to gain as the U.S. aims for energy independence. The company’s stock‍ closed at $117.73, ‍nearing its October 2024 ​peak of $126.34. ExxonMobil, with‌ a market capitalization of $510 billion, ‌is the largest U.S. oil producer and the 14th‍ most valuable ‌company on the‌ NYSE. Its shares have ‌increased 9.4% since the start of the year.

InvestingPro‌ gives ExxonMobil⁤ a “GOOD” financial health score of 2.88, driven‍ by strong price momentum and profit metrics.

General Motors: A Stock to Sell

General Motors (GM) faces headwinds from the administration’s decision to impose⁣ a 25% tariff‌ on imported‍ vehicles and components. Effective April 3, these tariffs could significantly impact the U.S. auto industry,potentially adding $110 billion in annual ⁢costs,or $6,700 per vehicle.

GM’s reliance on a global supply chain makes it vulnerable. absorbing tariff costs could erode profit margins, while passing them on to consumers risks lower sales. The tariffs‍ pose a‍ substantial threat to GM’s earnings,with a notable impact expected by⁣ the​ second half of 2025.

GM stock closed at $46.68, ‍near its 2025 low of $44.41. The company has a market ‌capitalization of $46.5 billion, making‌ it the second-largest U.S. automaker after Tesla. Shares are⁣ down 12.4%​ year-to-date.

InvestingPro gives⁢ General Motors a “GOOD” financial health score of 2.61, with balanced performance in profit metrics and growth, but some weakness in cash flow and price momentum.

What’s next

Investors will closely monitor upcoming economic data and policy announcements to gauge market direction. The impact of tariffs on the automotive industry and the energy sector will be‌ a key focus in the coming weeks.