Actions of Nvidia (Nvda -1.64%)) are booming on Tuesday. The company’s shares won 3% at 12:50 p.m., but it increased up to 8.4% earlier in the day. The significant rebound occurs while S&P 500 won 1.4% and the Nasdaq Composite jumped 1.2%.
The news of tariff negotiations have triggered optimism for Nvidia and other flea stocks.
An end in sight?
After days of chaos on the market, hope emerged that an end is in sight. President Donald Trump’s price announcement after the closing of the market last Wednesday sent the markets around the world Wednesday in a descending spiral from Thursday to Monday to Monday to Monday. The fears of recession have developed considerably, the markets have seen one of their worst three -day sections for decades.
Today, however, a certain optimism has emerged while some key business partners show a restraint, refusing to retaliate against American rates, as China did shortly after the announcement last week. The president of South Korea said that this would not add fuel to the fire, saying “I do not think that this kind of response would considerably improve the situation”, the addition of his country “would clearly like to negotiate”.
Although tensions are still high and things can degenerate, today’s chatter made believe that the Trump administration is interested in working to conclude agreements. The administration has given many different reasons to the prices, some of which have indicated that they could be permanent rather than to take advantage of more favorable trade agreements. The market clearly hopes that it is the latter and investors seemed to take the events of today as a sign that there is an end in sight.
I still think that Nvidia is in a strong position and is currently occurring – at least under normal conditions. If the current trade war, especially between China and the United States, is not resolved, this calculation could change. I think it is better to remain cautious at the moment and to wait more clarity.
Johnny Rice Has no position in the actions mentioned. The Motley Fool has positions and recommends Nvidia. The Word’s madman has a Disclosure policy.