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Wall Street Is Defying Gravity as Stocks Soar Despite Tariff Risks

Wall Street Is Defying Gravity as Stocks Soar Despite Tariff Risks

Published: by Omor IE

Key Points

  • Chip stocks and AI stocks have been the biggest losers in the past few weeks, but they are driving the gains today.

  • Many healthcare and energy stocks have also surged. LNG stocks have surged due to tariff negotiations.

  • The market is still awaiting more clarity, so the rally could cool down.

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It was only yesterday that BlackRock CEO Larry Fink said that “we’re probably in a recession” right now. Most investors expected the stock market selloff to continue as the S&P cratered as the market opened this week.

The scene has changed completely today as the stock market is rebounding sharply with expectations of further trade deals. Investors still want clarity about the trade policy, but most do not think severe tariffs will stick around due to many countries reportedly reaching out for negotiations. Regardless, most top U.S. trade partners have yet to do so, and today’s rally could end up being a dead cat bounce if Wall Street continues to be left in the dark.

Here’s a market update as of 11:00 A.M (ET) today.

  • The S&P 500 is up 134.87 points, or 2.66%.
  • The Nasdaq Composite is up 505.72 points, or 3.24%.
  • Dow Jones Industrial Average is up 1,159.28 points, or 3.06%.
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AI and Chip Stocks Are Driving Gains

AI stocks and chip stocks have popped significantly today. These stocks lost the most in the past few weeks, so today’s outsized bounce-back makes sense.

  • Palantir (NASDAQ: PLTR) is up over 9%.
  • Broadcom (NASDAQ: AVGO) is up over 8% as the company announced a new $10 billion share buyback plan.
  • NVIDIA (NASDAQ: NVDA) is up 7% today.
  • Tesla (NASDAQ: TSLA) bounced back by 5.5%, though the optimism here is lukewarm due to the controversy surrounding the brand.
  • Advanced Micro Devices (NASDAQ: AMD) is up 5% despite getting a downgrade from KeyBanc.

Notable Gainers Today

  • Agilon Health (NYSE: AGL) is up over 27% after Bernstein upgraded the stock to “Outperform” and increased its price target significantly from $3.3 to $8.5.
  • Spire Global (NYSE: SPIR) is up 22% after the announcement that it reached an agreement with Kpler to settle ongoing litigation and release mutual claims. Stifel also maintained its “Buy” rating on the stock and has an $18 price target.
  • Venture Global (NYSE: VG) is up 17.5% as it recovers from earlier losses. Investors think that the company could win from the tariff negotiations as it is involved in LNG exports.
  • Similarly, NextDecade (NASDAQ: NEXT) is up 16% after it linked a 20-year LNG deal with an Aramco subsidiary.
  • SIGA Technologies (NASDAQ: SIGA) is up 18% after announcing its fourth consecutive special cash dividend of 60 cents per share.

Many other stocks are up by double digits today. Carvana (NYSE: CVNA) has gained 13% after opening an auction and vehicle reconditioning megasite, Rhythm Pharmaceuticals (NASDAQ: RYTM) is up 12% after a BofA upgrade on trial win, and Peabody Energy (NYSE: BTU) is up 11% as analysts get more bullish on energy stocks.

Notable Losers Today

Very few big companies have plunged today due to the broader market rallying.

  • Alumis (NASDAQ: ALMS) is down 19% due to analysts souring on the biotech company’s prospects.
  • Tilray Brands (NASDAQ: TLRY) is down 12% after it missed earnings and revenue estimates. Earnings missed by $0.83.
  • Metsera (NASDAQ: MTSR) is down 9%.

The image featured at the top of this post is ©denphumi / iStock via Getty Images.

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