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Most technology shares rise today after a shocking announcement from China, taking the market by storm this morning.
Even after many strong profit reports over the past two weeks, many prominent companies have struggled, as President Donald Trump’s tariff has sparked revenge on commercial partners, causing high economic uncertainty.
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This is likely that investors will be emotional, as experts have presented terms such as “stagnation” and “bear market”.
However, today’s news has shift in momentum, prompting many leading technology stocks, from consumer technology producers to their peers in the AI’s area. This includes the NVIDIA market leader ((Nvda)) That has been rising since the opening of the markets.
Photo and colon source; Edlson & Sol; Getty Images
China News helps raise the level and peers of NVIDIA
This week began a great start to many sectors, but especially for technology. In a joint statement issued this morning, American and Chinese governments announced a 90 -day stand on the definitions they imposed against each other, adding that negotiations during that period will continue.
Related: NVIDIA shareholders should not worry about China’s news, the analyst says
For both investors and consumers, this is a very positive development. This means that both countries will significantly reduce the definitions imposed on each other, with the United States decreased in China’s tariff from China from 145 % to 30 %, and China reduces revenge tariff from 125 % to 10 %, which greatly reduces the costs imposed on many companies.
Companies like NVIDIA will not be affected by this news as much as their peers are affected in the field of consumer technology, such as Apple and Samsung. Do not remove this definition stopping barriers related to countries and entities that American companies can sell, a major challenge facing NVIDIA.
However, NVDA’s stock reaction was positively to the advertisement, and sent the shares to the green.
“NVIDIA jumped by 4.3 % in morning moves,” Reports Investor business daily. “The artificial intelligence giant shares have moved decisively over their 50 -day line during the past few trading sessions and approached their 200 -day line, which is a major area to watch it.”
More NVIDIA news:
- Chips makers like Nvidia, AMD get a gift from Washington
- NVIDIA CEO looks out on China
- Analyst says that NVIDIA shareholders should not worry about China’s news.
Since then, the shares have continued to rise and currently rise more than 5 %. Although NVIDIA does not have much to gain it directly from the customs tariff, the news may be a bullish indicator. Today’s gains are likely to be the result of a positive market momentum.
Today’s news indicates a high possibility of the main transformation of artificial intelligence shares
Important meals for investors are what this development can represent for NVIDIA. It indicates that tensions between the United States and China finally reduce, after months of high tensions and high certainty, factors that negatively affected stock prices.
Related: NVIDIA CEO appears to be alerting to the Chinese competitor
In addition, this comes in an excellent time for NVIDIA. The Trump administration plans to unveil its changes on the basis of the spread of artificial intelligence on May 15, and it is expected that technology companies that want to see the current commercial restrictions will prefer.
Nafidia leadership Call The current prevalence base of artificial intelligence when President Joe Biden announced in December 2024.
Since then, CEO Jensen Huang has taken a cloak. He is recently I told a group One of the policy makers that the United States needs to “accelerate the spread of American artificial intelligence technology” to remain ahead of China.
If the trade relations between the United States and China are improving, it seems that the upcoming policy changes can include less restrictions on selling artificial intelligence chips to some countries. This is very important for NVIDIA, like Chinese competitors like Huawei Currently the seizure To share it from the prosperous artificial intelligence market in China.
Related: The Veteran Fund Director reveals the prediction of the S&P 500
