MCD

Global stock markets remain under intense pressure, with S&P 500 broad market index futures plunging by 21.7% to 4,806 points from their February peak of 6,147. This pace of decline is reminiscent of the COVID-era crash, during which the index fell by 35.6%. At that time, the Federal Reserve intervened when losses reached 27%, deploying emergency measures to stabilise markets. While the current drawdown is less severe, the U.S. central bank has already held an emergency meeting on 7 April. However, no changes to monetary policy were announced, suggesting that policymakers are still monitoring the situation. In the absence of firm intervention, further downside pressure on the benchmark index remains likely, potentially allowing additional time for authorities to act.

The mounting stress in financial markets comes amid a rapidly escalating trade war. U.S. President Donald Trump has promised to impose an additional 50% tariff on Chinese imports, further inflaming global trade tensions. China appears determined to respond in kind, raising the stakes in an already volatile environment. This turmoil has narrowed the range of stocks considered attractive, as investors flee from risk and seek resilience.

In this context, McDonald’s stands out as a relatively safe investment. The company benefits from its global brand and diversified presence, but critically, much of its supply chain relies on domestically produced food and goods. This shields it from the immediate impact of international trade disputes. Shares of McDonald’s are increasingly viewed as a defensive asset, offering greater stability and better performance during periods of heightened market turbulence.

Amid these conditions, I am planning to buy McDonald’s shares in the $296 to $302 range, targeting a price of $345 to $350. A stop-loss at $251 will help manage downside risk.