Wall Street's Unstoppable Comeback: Why Tech Stocks Are Surging Despite Trade War Chaos

Khac Phu Nguyen

Mon, May 12, 2025, 8:42 PM 2 min read

Wall Street is roaring back arsenic the S&P 500 (SPY) jumps 3.12% and the Nasdaq (NASDAQ:QQQ) is up 3.9% astatine 2.08pm, driven by a surge successful megacap tech stocks similar Tesla (NASDAQ:TSLA). Investors look to beryllium shaking disconnected the daze from Donald Trump's Liberation Day announcement, focusing alternatively connected signs of a imaginable cooling successful US-China commercialized tensions. Mark Dowding, main concern serviceman astatine BlueBay Fixed Income, suggests the marketplace is adjusting to a little terrible economical fallout than initially feared. With the Federal Reserve present expected to chopped rates doubly successful 2025, traders are recalibrating their strategies, but the hazard of different commercialized flare-up looms.

Still, not everyone is buying into the optimism. Roberto Scholtes, caput of strategy astatine Singular Bank, cautions that adjacent if a commercialized woody is reached, the harm from months of economical uncertainty could inactive sting. Companies similar Ford Motor Co., United Parcel Service Inc., and Mattel Inc. person already pulled guidance, blaming tariff volatility. Meanwhile, immoderate investors are utilizing the commercialized truce to offload Chinese exports, perchance exacerbating commercialized imbalances. Treasury Secretary Scott Bessent hinted that the 90-day cooling-off play could beryllium extended, but with nary wide solution successful sight, the timepiece is ticking.

For traders who missed the rally, the model to bargain the dip whitethorn beryllium closing fast. There is nary much dip to buy, says David Kruk, caput of trading astatine La Financiere de L'Echiquier. The S&P 500 has present clawed backmost astir fractional of its February losses, portion the Bloomberg Dollar Index is inactive 2.7% beneath its April high. As traders brace for different imaginable showdown betwixt Washington and Beijing, the market's adjacent determination could hinge connected whether the Fed sticks to its expected complaint cuts oregon if different circular of commercialized turbulence throws everyone disconnected course.

This nonfiction archetypal appeared connected GuruFocus.