The major equity benchmarks recovered from the bloodbath of previous sessions, as traders hoped that the US will reach a trade deal and lower duty.
The Dow Jones Industrial Average is up 836 points as of the moment this article was written, after having fallen over 1,000 points on Monday.
S&P 500 gained 2% over the last close.
Nasdaq composite index was up over 2% since Monday’s closing.
Yesterday, both the Dow and Russell 2000 saw losses of 0.9%, while the S&P dropped by 0.2% and the NASDAQ showed a small gain.
David Morrison is a senior analyst for Trade Nation.
These numbers do not reflect the chaos and panic that has engulfed the market.
On Tuesday, US President Donald Trump said on Truth Social that he and South Korea’s acting leader had an productive conversation over the phone. He also indicated that China was eager to make a deal.
The White House has made a number of comments indicating the US was in discussions about trade with trading partners.
CNBC reported on Tuesday that Treasury secretary Scott Bessent stated around 70 countries have approached the US to negotiate tariffs.
Bessent said that if good proposals are brought forward, then deals can be made. However, some tariffs could remain in the final deal.
Robert Ruggirello is the chief investment officer of Brave Eagle Wealth Management. He believes investors need more consistency in trade policies to maintain a rebound.
There must be some sort of staying power. This is something that allows corporations to make long-term decisions about capital allocation. Ruggirello said to CNBC that they must have faith in the consistency of their policy.
Apple shares surge
Wamsi Mohan, a Bank of America analyst, views Apple’s declining stock price as “an enhanced buying opportunity for investors who want to buy a name of high quality.”
Mohan said that Apple’s shares fell by approximately 25 percent this year. This is largely because of the geopolitical uncertainties surrounding Trump tariffs, and also due to the delay in implementing AI features for Siri.
Apple’s stock rose by as much as 4% on Tuesday.
In a note dated Tuesday, the analyst told clients that the company typically sees gains within the first 12 months after an event which lowers the price to earnings ratio.
Mohan said that the Wall Street consensus estimate of Apple’s risk is likely to be underestimated by a potential increase in tariffs.
Apple’s supply chain can be optimised by adjusting its prices, shifting production from China to India, and adjusting the release pace.
Broadcom jumps
Broadcom’s shares rose by 3% during premarket trade after the company announced that it had authorized a $10 Billion share purchase program until the end of this year.
Hock Tan, CEO of Broadcom stated that this announcement “reflects Broadcom’s board’s confidence” in its diversified semiconductors and software infrastructure product lines.
He highlighted the uniqueness of its position as a provider of mission-critical software for infrastructure and how it enables hyperscalers in their expansion to bring generative AI innovation into subscriber platforms.
Healthcare stocks rise
Stock prices for major insurance companies have soared after the Trump Administration’s announcement that Medicare payment rates will be raised to 5.06% in 2019.
Humana’s shares grew by more than 13%.
CVS Health, UnitedHealth, and other companies also experienced notable increases, as their stocks rose by over 7%, and about 6% respectively.
The market’s reaction highlights the financial implications of the payment rate hike, which is significantly higher than the increase proposed by the Biden Administration.
The Wall Street Journal article that revealed the Trump Administration’s plans was probably the main catalyst behind the positive stock market response.
The post Dow, S&P 500 and Broadcom share prices rebound in hopes of tariff deal; Broadcom shares rise, Healthcare stocks show notable gains could be updated as new developments unfold.
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