Happy Tuesday! A trade breakthrough between the U.S. and China has Wall Street buzzing — and tech stocks leading the charge. Could this temporary truce be the spark that propels the market to new heights? Read on to see which companies stand to benefit the most and why analysts are calling this a "dream scenario."

Also, many assumed companies were building massive inventory cushions prior to reciprocal tariffs; however, the reality may be far thinner than expected. Here’s everything you need to know.

— Justin Giles

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MARKET RECAP

Yesterday: U.S. indexes soared on Monday as the U.S. and China agreed to a 90-day reduction in tariffs, easing trade tensions and lifting risk assets, particularly in consumer discretionary and technology sectors. Bond yields rose, with the 10-year Treasury yield at 4.47%, as markets delayed expectations for the next Fed rate cut to September and reduced expectations for the overall number of cuts for 2025. President Trump signed an executive order targeting lower pharmaceutical prices, though legal hurdles may delay its impact. Oil extended gains above $60 a barrel, and the U.S. dollar strengthened. Meanwhile, House lawmakers released a draft tax bill aimed at extending key provisions of the 2017 tax reform, signaling the start of a complex legislative process expected to continue through the summer.

On Our Radar: Analysts will be monitoring a trio of Federal Reserve speakers throughout the day on Wednesday with upcoming remarks from Christopher Waller, Philip Jefferson and Mary Daly. On the earnings front, Oklo reports after hours on Tuesday, while Global-E Online and Tower Semiconductor headline a slate of companies that will report before the bell on Wednesday.

TOP STORY

China Tariff De-Escalation Biggest Winners Include Tesla, Apple: 'New Tech Highs Back On The Table Now For 2025'

A surprise breakthrough in trade negotiations between the U.S. and China is sending ripples throughout global markets, with the tech industry leading the charge.

With both nations agreeing to slash tariffs for the next 90 days, Wall Street is repricing expectations for some of the market’s most influential players. One top analyst says this shift doesn't just boost sentiment — it could be a pivotal turning point that reshapes the entire tech landscape.

This development isn’t just about short-term relief as companies re-strategize and investor confidence has switched back to a ‘risk on' approach.

Among the companies poised to benefit most are two familiar giants — Tesla and Apple — with each uniquely positioned to capitalize on this policy shift. Their stock prices have already started to reflect the momentum, but analysts suggest this is only the beginning of a larger trend that rewrites what’s possible for tech, and could clear the way to new highs for the industry this year.

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FIVE ZINGERS

Coin Surge: Shares of Coinbase surged and made crypto history as the company clinched a coveted spot in the S&P 500, replacing Discover Financial Services. Is this the start of a bigger breakout for Coinbase? Click here to see what it means for the future of crypto on Wall Street.

Cloud Nine: GigaCloud Technology's Q1 earnings results smashed analyst estimates, with Q2 guidance also exceeding expectations. Investors are on cloud nine after shares soared more than 20% after hours. Here are all the details. 

Revved Down: Shares of Hertz took a hit after posting disappointing Q1 results. The company is focusing on fleet adjustments and rising vehicle values to recover. Read on to learn more about whether this is a temporary setback or a sign of deeper issues.

Valuation Spike: Perplexity, an AI-powered search startup, just saw its valuation skyrocket during its latest funding round this week. As Google’s market share continues to dip, and with more people using AI platforms like Perplexity, OpenAI and xAI, a major shakeup is taking place in the search landscape — check out the full story here.

Soaring Potential: Archer Aviation is flying high after surpassing earnings expectations and securing key partnerships, including one with Palantir, all while prepping for takeoff in the UAE. With record cash in the bank, discover what’s fueling the momentum. 

ONE FOR THE ROAD

How Much Inventory Did Companies Actually Build Ahead Of Tariffs?

As the global economy grapples with tariffs, one key question emerges: how much inventory have companies really stockpiled before tariffs went into effect?

While many companies have been rushing to pre-purchase goods, hoping to avoid future price hikes, the actual amount of "extra" inventory may not be as significant as some might expect. Analysts have been crunching the numbers, and it appears the rush wasn’t as big as most people thought. Some analysts are suggesting that stockpiles may only last a matter of weeks, not months.

Several major corporations, from Citigroup to Amazon, have acknowledged the strategy of pulling forward inventory to shield themselves from potential tariff impacts. However, as the economic landscape continues to evolve, it raises the question: will this buffer be enough to weather the storm?

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