President Trump's tariffs are wreaking havoc in the U.S. stock market, but investors may have dragged down some stocks that don't deserve it.
First off, the S&P 500 is down 4.6% since May 3, the last trading day before Trump did his one-eighty on China. Stocks with part of their supply chains originating in China, like General Motors (GM) - Get General Motors Company (GM) Report and Ford, or much of the iShares S&P semiconductor ETF (SOXX) - Get iShares PHLX Semiconductor ETF Report , are down considerably since then.
But some of the big tech names heavily centered on services -- and with no direct exposure to tariffs -- are also down considerably since May 3. Of course, there are factors other than trade for investors to consider, but it's notable that these stocks have been hit so hard in this time span.
Facebook (FB) - Get Facebook, Inc. Class A Report is down 7.6% since that date. Alphabet (GOOGL) - Get Alphabet Inc. Class A Report is down 4.2% since then. Netflix (NFLX) - Get Netflix, Inc. (NFLX) Report is down 9.3%.
Goldman Sachs strategists reminded investors in a note out May 13, "Services firms are less exposed to trade policy and have better corporate fundamentals than goods companies and should outperform even if the trade tensions are ultimately resolved."
Still, it's possible an economic slowdown caused partially by a trade war may put pressure on ad prices for Facebook and Google, if products advertised on those two platforms are forced to drop prices. However, there has not been any evidence from tech and FAANG analysts to support that.
Meanwhile, Tesla (TSLA) - Get Tesla Inc Report , TheStreet's premium sister publication Real Money's stock of the day, has seen several analysts revise downward their estimates on the stock, and Real Money's Bruce Kamich says the stock is indicating even lower.
Sign up for the daily In Case You Missed It Newsletter Here