Market Rally: China Tariff Deals And Pharmaceutical Orders Top The Catalysts.
Stocks surge on 90-day U.S./China tariff slash:
The broader market is rallying on Monday morning, as 145% tariffs on China are being brought down to 30%, and Chinese reciprocals are being brought down from 125% to 10%. About five weeks after the “Liberation Day” tariffs, many of those geopolitical tolls are no longer, as Trump’s tariff policy continues to baffle economists and investors alike…
UBS strategists led by Sean Simonds had a note about how the questions will now shift from policy uncertainty and more to outcome uncertainty. “We are possibly past the peak of uncertainty as more granular detail on tariffs and other policies come into focus,” they say. “What comes after this, however, is the policy OUTCOME uncertainty.”
Tech and retail stocks are topping the winners, with Best Buy, Amazon, Nike, and Tesla leading the way. The consumer discretionary sector is up 4.3% in early trading, while the technology sector follows at +3.65%.
A little over a month ago, President Trump eagerly verbalized that these tariffs were a long-term solution – meant to bring manufacturing, jobs, and wealth to the U.S. Now of course, the President (and his advisors) are calling it the art of the deal. So which one is it? This economic paradox of intending to sustain the tariffs, and then immediately wiping them away, is a perfectly accurate representation of this Administration’s ineptitude in both global and domestic economic affairs. In other words, they don’t know what they’re doing – even while they clean up their own mess.
10 AI stocks that stand to benefit from tariff cuts:
With artificial intelligence likely being the most important innovation of our lifetimes, the investment opportunity in AI and tech has become a fan-favorite. Many of AI’s early winners have been dampened by the current geopolitical tensions, however, as the Trump Administration starts to make global amends, these ten tech stocks have the opportunity to continue along their growth trajectory at full capacity…
10. Micron Technology Inc. (MU)
9. Advanced Micro Devices Inc. (AMD)
8. Taiwan Semiconductor Mfg. (TSM)
7. Alphabet Inc. (GOOGL)
6. Oracle Corp. (ORCL)
5. Amazon Inc. (AMZN)
4. Fortinet Inc. (FTNT)
3. Salesforce Inc. (CRM)
2. Nvidia Corp. (NVDA)
1. Applied Materials Inc. (AMAT)
Not only are these companies primed to benefit from AI expansion, but they’re also trading at relatively cheap valuations due to the recent market-wide uncertainty.
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Pharmaceutical pressure – fact or fiction:
Healthcare stocks fell premarket amidst executive order news surrounding a possible drug price restructure. Big pharma companies have since shaken those losses off and have joined the rest of the market in a Monday rally.
A White House official said on a press call early Monday that the new executive order from President Trump will push drugmakers to sell prescription drugs at low prices directly to patients. The order lays out a list of threatened actions if the drugmakers don’t comply. President Trump claims that this order will slash pharmaceutical prices by 80%. I hope there’s an advisor somewhere in Washington D.C. telling the President that a pharmaceutical price cut of 80% would dissolve the healthcare industry instantaneously, as R&D and production would likely be immediately halted.
Since his initial claim on Truth Social, more details about the order’s terms have been divulged and digested by the market. The healthcare sector is up 1.50% this morning.