Stocks Surge as Trade Optimism Boosts Market
Wall Street experienced a robust rally on Monday, fueled by renewed optimism regarding US-China trade relations. The Dow Jones climbed 1.3% to close at 46,068 points, while the S&P 500 gained 1.6% reaching 6,655 points. The Nasdaq led the gains, jumping 2.2% to 22,695 points.
The positive shift followed comments from former President Donald Trump indicating a potential resolution to ongoing trade tensions with China. Technology stocks, which had experienced declines late last week, were especially strong performers. Nvidia, a leading manufacturer of AI chips, saw a nearly 3% increase, and oracle, a provider of cloud and software services, rose by over 5%. Tesla shares also increased, closing up 5.4%.
Further bolstering the tech sector, Broadcom surged 10% after announcing a collaboration with OpenAI to develop and launch custom AI accelerators – a partnership confirmed after a year and a half of work.
Beyond technology,media company Warner Bros.Discovery gained more than 4% following reports that it had rejected a takeover bid from Paramount Skydance (up 0.6%). Sources indicate the bidder may pursue a revised, potentially hostile, offer or seek alternative partners.
estee Lauder shares rose 6% following a buy proposal from Goldman Sachs, which projects a 30% increase in the beauty group’s stock price. Yelp, the consumer review platform, jumped nearly 12% after Evercore upgraded its rating from in line to outperform and substantially raised its price target.Dating app grindr also saw gains, closing almost 11% higher on reports that major shareholders are exploring a plan to take the company private, led by Raymond Zage and James Lu who collectively own over 60% of the company.
the raw materials sector also saw activity, with rare earth producers benefiting from the trade discussion. USA Rare Earth rose 30% following warnings from former President Trump regarding potential retaliatory measures against China’s export restrictions.
JPMorgan Chase closed 2.4% higher after announcing a $1.5 trillion, 10-year plan to invest in companies and acquire stocks deemed strategically important to national security. CEO Jamie Dimon highlighted the US’s meaningful reliance on potentially unstable sources for rare earth materials.
Though,not all stocks participated in the rally. Beyond Meat experienced a significant decline, losing approximately half its value after announcing a debt swap agreement with creditors. The deal, intended to reduce debt, involves the issuance of over 316 million new shares, diluting existing shareholder value.
