In a recent publication, we highlighted the top 10 low volatility stocks to consider in the current market climate. One company that stands out in this landscape is Philip Morris International Inc. (NYSE: PM). In this article, we will delve deeper into how Philip Morris measures up against these leading low volatility stocks.

The US stock market has encountered significant turbulence in the first quarter of 2025. This period has been characterized by pronounced volatility and negative returns across major stock indices, primarily driven by uncertainty surrounding the performance of technology stocks, fluctuating economic data, and escalating trade tensions. These factors have collectively created a challenging environment for investors.

The year commenced with the unveiling of a groundbreaking Artificial Intelligence (AI) software developed in China, known as DeepSeek. This innovative AI system is seen as a formidable competitor to its American counterparts, particularly ChatGPT, and has been hailed as revolutionary in the realm of AI technology. The introduction of DeepSeek sent shockwaves through global markets as investors reacted to the potential disruption it could cause in the tech industry. According to a report by Reuters, this led to a widespread sell-off among global investors, particularly in US indexes, resulting in staggering losses for major tech companies, one of which alone lost $593 million in a single day.

In response to this emerging challenge, the US government moved swiftly to implement a series of policies aimed at bolstering the competitiveness of US-listed tech firms. These measures included imposing tariffs designed to mitigate the impact of DeepSeek and protect American interests in the technology sector. In February 2025, the first round of tariffs was announced, specifically targeting Chinese imports to diminish the influence of DeepSeek on the US tech landscape. By March, President Trump had declared a substantial 54% tariff on a range of Chinese goods, prompting an immediate retaliatory reaction from China, which responded with 34% tariffs on American products and services.

As of April 11, 2025, the total tariffs applied by the United States on Chinese goods have escalated to a staggering 145%. However, certain sectors, including Technology, Automobiles, and Smartphones, have been granted exemptions from these tariffs to encourage continued trade and innovation. In retaliation, China has imposed its own tariffs, amounting to 125% on American goods and services.

This economic landscape, marked by a complex web of tariffs and trade disputes, has contributed further to market uncertainty. The persistent question regarding interest rates has also added to the volatility. The Federal Reserve has decided to maintain interest rates within the range of 4.25% to 4.50%. In a recent address at the Economic Club of Chicago, Federal Reserve Chairman Jerome Powell emphasized the need for caution: For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance.

Currently, the US economy is grappling with what some experts describe as continuous stagflation. This term refers to a troubling economic condition characterized by persistent inflation coupled with very low economic growth and high unemployment rates. In assessing market conditions, the Cboe Volatility Index (often referred to as the VIX) serves as a critical indicator for the Federal Reserve. A VIX reading of 20 or above signifies a heightened level of anticipated price fluctuations. As of the latest reports, the VIX stands at a concerning 32.64%, indicating significant market uncertainty.