The significant cut in tariffs between the U.S. and China over the next 90 days is a “best case scenario” for tech stocks, Wedbush Securities said on Monday.
“This is clearly just the start of a broader and more comprehensive negotiations, and we would expect both these tariff numbers to move down markedly over the coming months as deal talks progress,” analysts at the firm wrote.
Calling it a “dream scenario” for the market and bullish investors, the U.S. and China now appear on an “accelerated path for a broader deal” that the firm believes will allow the broader market and tech stocks to see new highs this year.
And while there is more work to be done, especially around the chip restrictions that have impacted companies like Nvidia (NASDAQ:NVDA) and others, the news is seen as “very bullish” for the tech trade, the analysts posited.
“This morning is a huge win for the bulls and a best case scenario post this weekend in our view,” the wrote.
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