The US, China trade negotiations will determine the fate of these stocks into year-end

Nearly two years after the tit-for-tat tariff threats in the U.S.-China trade war, the market is still not out of the woods even with the so-called “phase one” deal close to being finalized.

President Donald Trump’s trade battle with China will decide how the markets close out the year after the Federal Reserve delivered the third straight rate cut this week, according to Wall Street. Stocks took a hit on Thursday owing to a report saying China is casting doubt over the possibility of a long-term trade deal due to Trump’s “impulsive nature.” They then recovered to a new high on Friday.

The following are the stocks that stand to be affected the most on the trade-war outcome and will likely be the most actively traded among investors making their bets on or against a trade pact.

In general, IT sector is the most vulnerable to a breakdown in the trade war as the median China revenue exposure is nearly 10%, the highest among the 11 S&P 500 sectors, according to Refinitiv.

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