Rising US-Chinese trade tensions sparked a global market sell-off, sending the S&P 500 and Nasdaq to their worst sessions since April. Chip stocks plunged amid fears that China's new rare earth export curbs would disrupt semiconductor supply chains. Copper fell as investors feared a renewed trade war would constrain demand from the world's two largest economies.
President Donald Trump on Friday threatened China with a "massive" increase in tariffs in retaliation for Beijing imposing strict controls on rare earths.
Stocks tied to rare earths jumped after Trump threatened countermeasures against China, noting the country was holding the world "captive" over the metals.
Albemarle (ALB) closed at $90.53 in the latest trading session, marking a -1.63% move from the prior day.
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In the closing of the recent trading day, Albemarle (ALB) stood at $86.88, denoting a -1.38% move from the preceding trading day.
The Zacks Chemicals Diversified industry is hamstrung by weak demand in Europe, China and key end markets. DD, ALB and MEOH are poised to navigate the industry challenges.
Albemarle is poised for growth as lithium demand rebounds, with supply cuts stabilizing prices and setting up a bullish multi-year trend. Technical analysis shows ALB is above its 30-week EMA with both short- and long-term momentum indicators signaling a strong upward trend. Volume patterns indicate institutional buying support since April 2025, reinforcing the positive technical outlook for ALB shares.
The stock finds itself in an odd spot.
Recently, Zacks.com users have been paying close attention to Albemarle (ALB). This makes it worthwhile to examine what the stock has in store.
Albemarle is my top lithium play, benefiting from a potential lithium market turnaround and its status as the world's largest producer. The company's resilient management, strong cost controls, and recent earnings beats signal a swift recovery and future outperformance. Analysts remain overly bearish, but improving lithium prices and high short interest set up Albemarle for a potential short squeeze.