The stock market rally is proving to be real despite fading from the best levels of the day. The Nasdaq Composite leads the major stock market averages with a 3% gain, while the Dow Jones Industrial Average has trimmed its gains from 700 points to 500 points. The S&P 5o0 is up about 2%. President Trump’s willingness to tone down the tariff war with China has been a catalyst, as he admitted the 145% retaliatory tariffs on Beijing are not sustainable.
While technology stocks lead the markets higher today, there may be another shoe yet to drop. According to KeyBanc analysts, chip stocks, in particular, could have another 30%-40% to fall if a recession rears its head in the economy. Semiconductor stocks have been vulnerable to the Trump administration’s tariffs, posing further risk to the sector, the analysts said. Today the PHLX Semiconductor Index is gaining 4.6%.
The stock market is rallying and is not looking back. So far this morning, the major indices are racing to take back lost ground, led by a 3.9% jump in the Nasdaq Composite. Small-cap stocks are participating too, with the Russell 2000 index gaining 3.8%.
The Trump administration’s willingness to negotiate with China on tariffs has been the positive catalyst to unleash gains, alongside the president’s inclination to stick with Fed Chairman Jerome Powell. Hedge Fund manager Dan Loeb has been dumping Magnificent 7 stocks since they have been a drag this year after leading the broader markets higher for two years running.
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The markets are unleashing gains amid indications that the height of the tariff wars is behind. President Trump revealed he is willing to come to the table with China on tariffs, hinting levies could even fall by 50%. He also addressed yet another worry that has been weighing on sentiment – the Fed. The president revealed he has zero plans to fire Fed Chairman Jerome Powell, giving the markets greater stability to stand on and boosting sentiment further.
AppLovin (Nasdaq: APP | APP Price Prediction), a trader favorite, is rallying 11% on the day to above $260 per share. The stock has traded as high as $525 per share in the past 52 weeks due to FOMO surrounding this mobile technology company.
Cybersecurity play Crowdstrike (Nasdaq: CRWD) is advancing 6% today as the tech sectors recaptures lost ground. Palantir (Nasdaq: PLTR) is gaining over 7% today to above the $101 per share threshold as it gets closer to striking distance to its 52-week high of $125 per share.
Magnificent Seven stocks are leading today’s market rally, including gains of 4.4% and 5.7% in Nvidia (Nasdaq: NVDA) and Meta Platforms (Nasdaq: META). Hedge fund manager Dan Loeb reportedly revealed that he’s dumped nearly 100% of his Mag 7 stock holdings due to a rocky start to the year for the sector from the tariff impact. After leading stock market gains for two years, the Mag 7 stocks have reversed course to drag the broader markets lower in 2025.
Here’s a look at the performance as of morning trading:
Dow Jones Industrial Average: Up 781.37 (+1.99%)
Nasdaq Composite: Up 569.96 (+3.5%)
S&P 500: Up 135.93 (+2.6%)
Intuitive Surgical (Nasdaq: ISRG) is rising 6.3% today on the heels of its quarterly earnings print despite feeling the impact from tariffs.
Chip stocks are gaining, including Texas Instruments (Nasdaq: TXN), Applied Materials (Nasdaq: AMAT) and Intel (Nasdaq: INTC).
Boeing (NYSE: BA) is driving gains in the Dow Jones Industrial Average, rising 5.7% on a Q1 loss that was narrower than anticipated.
DoorDash (Nasdaq: DASH) is gaining 5% on the day after clinching some new corporate partnerships of late. Maplebear (Nasdaq: CART) stock, which is behind the Instacart brand, is up about 1% on the day.
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Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
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