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The U.S. stock market nosedived on April 3, with the S&P 500 Index shedding about $2.4 trillion in market cap. President Donald Trump’s sweeping trade tariffs have stoked fears of an all-out trade war and intensified concerns about a global economic recession. The S&P 500 posted its biggest daily percentage decline since June 2020, tumbling nearly 5%. This has pushed the broad index again into correction territory.

While most of the S&P 500 stocks plunged, a few showed strength, defying the market rout. These include Lamb Weston Holdings, Inc. (LW - Free Report), Centene Corporation (CNC - Free Report), The Kroger Co. (KR - Free Report), First Solar, Inc. (FSLR - Free Report), and American Water Works Company (AWK - Free Report). These stocks all share a Zacks Rank #3 (Hold) rating.

Companies whose supply chains are heavily reliant on overseas manufacturing have suffered the most. Magnificent Seven stocks collectively lost more than $1 trillion in market cap amid the rout. The steep tariffs have raised concerns about higher prices, with the industrial, retail, consumer, and automotive sectors feeling the impact.

Investors have flocked to defensive sectors like healthcare, consumer staples, and utilities, which tend to be less sensitive to economic cycles and more resistant to market downturns. These generally act as a safe haven during political and economic turmoil. Stocks in these sectors also generally provide higher returns in troubled times.

New Tariffs: A Big Headache

Trump unveiled a sweeping 10% baseline tariff on all U.S. imports, effective April 5, alongside significantly higher duties on key trading partners. The new tariffs include a 34% rate on China, 20% on the European Union, 46% on Vietnam, 32% on Taiwan, and 26% on India, all set to take effect on April 9. In total, approximately 185 countries will be impacted, pushing U.S. tariff rates to their highest level in over a century. 

According to a JPMorgan economist, the tariffs represent the largest tax hike since 1968 and could push inflation up by 1.5% this year, based on the Federal Reserve’s preferred measure.

China retaliated by announcing a 34% tariff on imports of all U.S. products and other retaliatory moves. Meanwhile, the European Union is preparing retaliatory measures should negotiations fail.

The new administration also confirmed that the 25% tariff on global car and truck imports will proceed as planned, with additional duties on automotive parts set to take effect on May 3. The escalating trade tensions increase the risk of a full-scale trade war, which could slow down global economic growth.

5 Resilient Stocks

Here is a brief rundown on each of the previously-mentioned stocks that have stayed resilient despite the recent turmoil.

Lamb Weston

Lamb Weston is a leading global manufacturer, marketer, and distributor of value-added frozen potato products, particularly French fries, and the company also provides a range of appetizers. Though its earnings are expected to decline 39.2% this fiscal year, the stock rallied 10% on Thursday. Lamb Weston currently has a Value Score of B.

Centene 

Centene is a well-diversified healthcare company that primarily provides a set of services to government-sponsored healthcare programs. Though its earnings are expected to decline 1.4% this year, the stock climbed about 6% recently. Centene currently has a Value Score of A.

The Kroger Co. 

The Kroger Co. has been undergoing a complete makeover, not only with respect to products, but also in terms of the way consumers prefer shopping grocery. The company is focusing on plant-based products as well as eyeing technological expansion. The stock rose by 5.2% recently, and it has an estimated earnings growth rate of 6% for the fiscal year (ending January 2026). Kroger has a Value Score of B.

First Solar

First Solar is the world’s largest thin-film PV solar module manufacturer and the largest PV solar module manufacturer in the Western Hemisphere. The stock gained 5% on Thursday, and it has an estimated earnings growth rate of 55.9% for this year. It also has a Value Score of A.

American Water Works

American Water Works provides essential water services to more than 14 million customers in 24 states and employs approximately 6,700 people. It rose about 4% on Thursday, and it has an estimated earnings growth rate of 5.9% for this year. Additionally, the stock has a Momentum Score of A.

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