Strong Rebound in U.S. Stocks: Trump's Put Option Signal and Shift in U.S.-China Trade Rhetoric Drive Tech Stocks Up

Taiwan • Business • 04/25 03:04
Strong Rebound in U.S. Stocks: Trump's Put Option Signal and Shift in U.S.-China Trade Rhetoric Drive Tech Stocks Up

On April 24, 2025, the U.S. stock market surged across the board, with the four major indices hitting recent highs, led by technology stocks. The market was buoyed by the "Trump put" concept, a financial market belief that Trump would step in to stabilize the market during times of volatility. The White House adopted a more conciliatory tone regarding U.S.-China trade negotiations, despite China's denial that negotiations are ongoing. The stock prices of AI chip leader Nvidia and other tech giants rose. Trump denied not having discussed tariffs with China, emphasizing that there has been contact between the two sides.

Key Updates

04/25 18:32

2025 Turmoil in the U.S. Airline Industry: Budget Airlines Revamp Business Models to Tackle Economic Challenges

At the beginning of 2025, the U.S. airline industry, amid economic uncertainty and the escalating U.S.-China trade war, saw major airlines reduce their financial forecasts and cut flights. Low-cost carriers such as Spirit, Frontier, and Southwest were hit particularly hard and are shifting towards providing high value-added services to address the decline in demand. This shift reflects changes in market dynamics and the survival strategies of low-cost carriers.

04/25 18:32

Ed Yardeni, a senior market strategist, predicts a robust recovery for the U.S. market throughout the 2020s.

In April 2025, senior market strategist Ed Yardeni pointed out that despite trade tensions and policy uncertainties, the U.S. market might experience a strong recovery reminiscent of the "Roaring Twenties" of the 1920s. This perspective is based on recent stock market gains, a more moderate policy tone, and the resilience of economic fundamentals. If the policy environment stabilizes, the market is expected to get back on its post-pandemic growth path. The U.S. unemployment rate is low, consumer confidence is stable, and the shift in policy tone has also prompted a market rebound. The Federal Reserve might lower interest rates to counter the economic slowdown, and UBS recommends reallocating assets towards the euro, yen, and gold to manage volatility.

04/25 15:04

New York Stock Exchange Trader Tuchman: Using Technical Analysis to Stabilize Market Operations Amidst Turbulent White House Policies

Peter Tuchman, a senior trader at the New York Stock Exchange, has profited amidst the White House's policy chaos by using technical analysis and short-term trading strategies. He criticized the White House's unpredictable policies as "economic terrorism" and advised traders to scale down their positions, set stop-loss orders, and use technical indicators such as the Advance-Decline Indicator, RSI, and EMA to navigate market volatility. Tuchman emphasized the importance of risk management and suggested that long-term investors should hold off and buy on dips.

04/25 15:04

Disagreements in US-China trade talks are causing market uncertainty, resulting in early volatility in US stocks, and tech stocks showing mixed results.

On April 25, 2025, there was a discrepancy in the US-China trade negotiations. President Donald Trump claimed that talks had begun, while Chinese officials denied it, resulting in cautious market sentiment. In early trading, US stocks fell, with the Dow Jones Industrial Average dropping 204 points and the Philadelphia Semiconductor Index down 0.5%. TSMC ADRs fell 0.9%, Nvidia rose 1.3%, Alphabet increased 2.9% on strong earnings, and Intel dropped 8.2% on poor financial forecasts.

04/25 10:31

The Chinese Ministry of Commerce's statement called for the United States to remove tariffs, leading to significant fluctuations in the US stock and crypto markets.

On April 24, 2025, Spokesperson He Yadong of China's Ministry of Commerce announced that there are no ongoing trade negotiations between China and the United States, demanding that the U.S. cancel all unilaterally imposed tariffs. This statement contradicts the conciliatory signals sent by U.S. President Trump, causing declines in the U.S. stock, bond, and cryptocurrency markets, reflecting concerns in the market about global economic uncertainty.

04/25 03:04

Strong Rebound in U.S. Stocks: Trump's Put Option Signal and Shift in U.S.-China Trade Rhetoric Drive Tech Stocks Up

On April 24, 2025, the U.S. stock market surged across the board, with the four major indices hitting recent highs, led by technology stocks. The market was buoyed by the "Trump put" concept, a financial market belief that Trump would step in to stabilize the market during times of volatility. The White House adopted a more conciliatory tone regarding U.S.-China trade negotiations, despite China's denial that negotiations are ongoing. The stock prices of AI chip leader Nvidia and other tech giants rose. Trump denied not having discussed tariffs with China, emphasizing that there has been contact between the two sides.

04/25 02:34

U.S. stocks have rallied for three straight days: Dow Jones breaks through 40,000 points, PHLX Semiconductor Index soars 5.63%, TSMC's ADR jumps 4.04%

The U.S. stock market has risen for three consecutive days, as the Dow Jones index surged 486.83 points on April 24, closing at 40,093.40, breaking the 40,000-point mark for the first time. Technology stocks led the gains, as the Philadelphia Semiconductor Index soared 5.63% and TSMC ADR rose 4.04%. The market was influenced by mixed signals from Federal Reserve officials about rate cuts, along with Trump's calls for rate cuts and his announcement of new tariff measures. Trump claimed to have held talks with China, but China denied that trade negotiations had begun, leaving the trade outlook uncertain.

04/25 01:01

U.S. stocks have risen for three straight days: Corporate earnings have exceeded expectations, diminishing concerns over U.S.-China trade tensions

On April 24, 2025, the U.S. stock market increased for the third straight day, with technology stocks leading the way. Despite the lack of progress in U.S.-China trade talks and persistent tariff uncertainties, corporate earnings surpassed expectations, fueling investor optimism. The S&P 500 and Nasdaq indices climbed 2% and 2.74%, respectively, and the Dow Jones index jumped nearly 500 points. The market temporarily set aside trade war worries amid robust corporate profits and expectations of potential Federal Reserve monetary policy easing.

04/24 22:00

US stocks have closed higher for three consecutive days: all four major indices increased by over 1%, with the Dow Jones breaking through 40,000 points.

On April 24, 2025, the U.S. stock market increased for the third straight day, with all four major indices rising by more than 1%. The Dow Jones Industrial Average broke through 40,000 points, while the S&P 500 and Nasdaq indices increased by 2.03% and 2.74%, respectively. The Philadelphia Semiconductor Index jumped 5.63%. Technology and semiconductor stocks led the gains, with companies such as NVIDIA and Amazon performing strongly. Despite varied corporate earnings reports and sluggish trade negotiations, investors remained optimistic as funds flowed into the technology sector, pushing the market higher.

04/24 18:01

2025 Outlook for Mainland Chinese Stock Funds: Policy Backing and Economic Robustness, AI and High-End Consumer Sectors Take Center Stage

Since 2025, despite the pressures of trade wars and economic slowdown in the global market, China's A-share market has shown resilience, with the Shanghai Composite Index having decreased by only 1.6% as of April 23. Fund managers and foreign institutions point out that policy support, a robust economy, industrial innovation, and valuation advantages provide support for the market. The AI and high-end consumer sectors have become focal points, and the inflow of foreign capital indicates that international investors are reassessing Chinese assets. In the face of high volatility, it is recommended to invest regularly through a systematic investment plan and pay attention to the impact of US-China trade policies and China's reform progress.

U.S. Stock Indices Rise, Philadelphia Semiconductor Index Hits New Monthly High

On April 24, major U.S. stock indices rose across the board. The Dow Jones Industrial Average increased by 486.83 points, or 1.23%, closing at 34,093.40 points. The S&P 500 Index rose by 108.91 points, or 2.03%, closing at 5,484.77 points. The Nasdaq Index surged by 457.99 points, or 2.74%, closing at 17,166.04 points, marking a new high since April 2. The Philadelphia Semiconductor Index jumped 5.63%, closing at 4,208.19 points, the highest closing price since April 9.

According to LSEG statistics, 157 companies within the S&P 500 have reported earnings, with 74% exceeding expectations. Analysts estimate that the overall earnings growth rate for the first quarter will reach 8.9%, higher than the 8.0% estimated at the beginning of the month.

"Trump Put Option" and Shift in Trade Tone Boost Confidence

The market generally believes that recent statements from Trump signal a "Trump Put Option," indicating that the President will take action to stabilize the market in the event of a significant stock market decline. UBS Global Wealth Management noted that the White House's recent softer stance on U.S.-China trade relations has strengthened investors' confidence in the Trump Put Option.

Additionally, U.S. Treasury Secretary Scott Bessent stated at the International Institute of Finance meeting in Washington that there is an opportunity for the U.S. and China to reach a significant trade agreement, but denied reports that the Trump administration is considering unilaterally reducing tariffs on China. He emphasized that any tariff adjustments would need to be conducted simultaneously by both parties.

Trump Denies Not Discussing Tariffs with China

Despite multiple statements from China's Ministry of Commerce and Ministry of Foreign Affairs claiming that there have been "no economic and trade negotiations" between the U.S. and China, and labeling related reports as "fake news," President Trump stated to reporters at the White House on the 24th: "They had a meeting this morning, and we have been meeting with China. I believe your report is incorrect." He emphasized that there has been contact between the two sides and denied the claim of reducing tariffs on China by 145%.

White House Deputy Spokesman Kush Desai also stated that President Trump has made it clear that tariff decisions will be made by the President himself, and other claims are speculative.

Tech Stocks Lead the Rally, Nvidia and AI-Driven Software Companies Shine

Tech stocks have performed the strongest in this round of rebound. The SPDR Technology Select Sector ETF (XLK) rose 3.73%, closing at $205.43, the largest increase among the eleven sectors of the S&P 500. AI chip leader Nvidia's stock price rose 3.62%, closing at $106.43; its wafer foundry partner TSMC ADR also rose 4.04%, closing at $164.18.

Josh Parker, Senior Director of Corporate Sustainability at Nvidia, stated at the Ham Energy Research Institute conference that there are no signs of slowing demand for AI data centers. Kevin Miller, Vice President of Global Data Centers at Amazon, also noted that AI data center construction is still accelerating, with demand expected to continue growing. Amazon's stock price rose 3.29%, closing at $186.54.

AI-driven software company ServiceNow reported better-than-expected quarterly earnings, with its stock price surging 15.49%, closing at $938.57, indicating strong demand for AI-related software.

Conflicting Messages on U.S.-China Trade Talks, Market Remains Optimistic

Despite multiple denials from the Chinese side regarding tariff negotiations with the U.S., the market remains hopeful for improved relations between the two sides. Chinese Ministry of Commerce spokesperson He Yadong stated on the 24th that there are currently no economic and trade negotiations between the two sides and urged the U.S. to cancel all unilateral tariff measures and resolve differences through equal dialogue.

Chinese Ministry of Foreign Affairs spokesperson Guo Jiakun emphasized: "If you want to fight, we are ready to go all the way; if you want to talk, the door is open," but the premise is that the U.S. must stop threats and extortion and engage in dialogue on the basis of equality, respect, and reciprocity.

Despite conflicting official statements, the market remains focused on potential signs of easing. Paul Nolte, Senior Market Strategist at Murphy & Sylvest, pointed out that the chip industry is at the core of the U.S.-China trade dispute, and any softening of tariff rhetoric could have a positive impact on tech stocks.

References

People Also Ask...

faq

Trump claimed he discussed tariffs with China, but the Chinese side denied it. Could this contradiction impact our local economy?

faq

How big is the impact of Trump's put options on the US stock market? Why do tech stocks benefit the most?

faq

What impact do Trump's put options have on the US-China trade negotiations?