From Nasdaq: 2025-05-12 17:54:00

Stocks surged on Monday as the U.S. and China agreed to reduce tariffs, easing trade tensions. The S&P 500 and Nasdaq rose over 3%, with tech stocks like Apple and Amazon leading the gains. The agreement will last 90 days, boosting investor optimism for a global economic recovery.

Big tech stocks like Apple, Amazon, and Meta Platforms saw significant gains, with Tesla lagging behind due to declining earnings estimates. Microsoft also showed positive momentum. Chinese tech stocks like Alibaba and Tencent have benefited from higher investor sentiment, with both sporting a Zacks Rank #2 (Buy).

Retail stocks like Nike, Starbucks, Walmart, and Target rely on China for supply chain operations and revenue. Nike and Walmart have a Zacks Rank #3 (Hold), while Starbucks and Target have a Zacks Rank #4 (Sell). China accounted for 14% of Nike’s revenue in 2024, highlighting the importance of trade relations.

Energy and transportation stocks may see a boost following the trade agreement, as geopolitical tensions impacted energy demand. Crude oil prices rose over 2% to $62 a barrel but are down 20% in 2025. The agreement gives investors reassurance of a stable global economy, but progress in the next 90 days will be crucial.

Investors are eyeing a top semiconductor stock with strong earnings growth and a growing customer base. The stock is positioned to benefit from the demand for AI, ML, and IoT, with global semiconductor manufacturing projected to reach $803 billion by 2028. The stock has potential for significant growth in the semiconductor industry.



Read more at Nasdaq: Stocks to Watch as the U.S. & China Reach a Trade Deal