What Happened?
A number of stocks jumped in the afternoon session after the major indices popped (Nasdaq +3.4%, S&P 500 +2.5%) in response to the positive outcome of U.S.-China trade negotiations, as both sides agreed to pause some tariffs for 90 days, signaling a potential turning point in ongoing tensions. This rollback cuts U.S. tariffs on Chinese goods to 30% and Chinese tariffs on U.S. imports to 10%, giving companies breathing room to reset inventories and supply chains.
However, President Trump clarified that tariffs could go "substantially higher" if a full deal with China wasn't reached during the 90-day pause, but not all the way back to the previous levels.
Still, the agreement has cooled fears of a prolonged trade war, helping stabilize expectations for global growth and trade flows and fueling renewed optimism.
The optimism appeared concentrated in key trade-sensitive sectors, particularly technology, retail, and industrials, as lower tariffs reduce cost pressures and restore cross-border demand.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Drug Development Inputs & Services company Repligen (NASDAQ: RGEN) jumped 7.6%. Is now the time to buy Repligen? Access our full analysis report here, it’s free.
- Research Tools & Consumables company Bruker (NASDAQ: BRKR) jumped 7.9%. Is now the time to buy Bruker? Access our full analysis report here, it’s free.
- Research Tools & Consumables company Agilent (NYSE: A) jumped 7.8%. Is now the time to buy Agilent? Access our full analysis report here, it’s free.
- Drug Development Inputs & Services company Medpace (NASDAQ: MEDP) jumped 6%. Is now the time to buy Medpace? Access our full analysis report here, it’s free.
- Research Tools & Consumables company Revvity (NYSE: RVTY) jumped 7.7%. Is now the time to buy Revvity? Access our full analysis report here, it’s free.
Zooming In On Bruker (BRKR)
Bruker’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Bruker is down 31.3% since the beginning of the year, and at $40.38 per share, it is trading 48.4% below its 52-week high of $78.29 from May 2024. Investors who bought $1,000 worth of Bruker’s shares 5 years ago would now be looking at an investment worth $1,064.
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