In This Article:
What Happened?
A number of stocks jumped in the afternoon session after investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution. According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible." His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, following stocks were impacted:
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Data Analytics company Palantir (NASDAQ:PLTR) jumped 5.3%. Is now the time to buy Palantir? Access our full analysis report here, it’s free.
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E-commerce Software company Shopify (NASDAQ:SHOP) jumped 5.3%. Is now the time to buy Shopify? Access our full analysis report here, it’s free.
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Real Estate Services company Zillow (NASDAQ:ZG) jumped 5%. Is now the time to buy Zillow? Access our full analysis report here, it’s free.
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Advertising Software company Zeta (NYSE:ZETA) jumped 5.2%. Is now the time to buy Zeta? Access our full analysis report here, it’s free.
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Media company fuboTV (NYSE:FUBO) jumped 5.4%. Is now the time to buy fuboTV? Access our full analysis report here, it’s free.
Zooming In On fuboTV (FUBO)
fuboTV’s shares are extremely volatile and have had 69 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock dropped 7.2% on the news that Federal Reserve Chair Jerome Powell signaled a cautious stance on future monetary policy decisions during a speech in Chicago, emphasizing that trade tariffs could add upward pressure to inflation in the short term and complicate the Fed's efforts to stabilize the economy. He warned that such trade measures are "likely to move us further away from our goals," referring to the Fed's dual mandate of price stability and maximum employment.
The comments did little to improve sentiment, as major indices were already in the negative territory in the morning session after Nvidia announced it might be unable to sell some high-end chips (including the H20 chips) to China due to export controls and requirements from the Trump administration. As a result, the company planned to take a $5.5 billion charge due to inventory writedowns and canceled sales.