What Happened?
A number of stocks jumped in the afternoon session after President Donald Trump eased concerns over escalating trade tensions with China, calming markets rattled by his earlier tariff threats.
U.S. stocks rose sharply, with the Nasdaq-100 jumping nearly 2%, following a post on Truth Social where Trump suggested the trade conflict would not worsen. This shift in tone provided significant relief to investors, who had driven a sharp sell-off the previous Friday due to fears of higher tariffs. Technology companies with significant international supply chains and sales, such as AMD and Nvidia, led the market rally, with their shares climbing 4.2% and 3.4%, respectively. The broader market indexes, including the S&P 500 and the Dow Jones Industrial Average, also saw substantial gains, reflecting widespread optimism that a potentially damaging trade war might be averted.
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:
- Vertical Software company Bentley Systems (NASDAQ: BSY) jumped 2.9%. Is now the time to buy Bentley Systems? Access our full analysis report here, it’s free for active Edge members.
- Endpoint Security company CrowdStrike (NASDAQ: CRWD) jumped 3.1%. Is now the time to buy CrowdStrike? Access our full analysis report here, it’s free for active Edge members.
- Design Software company PTC (NASDAQ: PTC) jumped 3.1%. Is now the time to buy PTC? Access our full analysis report here, it’s free for active Edge members.
Zooming In On CrowdStrike (CRWD)
CrowdStrike’s shares are quite volatile and have had 18 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.
The previous big move we wrote about was 5 days ago when the stock gained 4.6% on the news that confidence in the artificial intelligence market was renewed, pushing both the S&P 500 and Nasdaq to new all-time intraday highs.
The rebound was led by chipmaker Nvidia, whose shares rose nearly 2% after its CEO confirmed that demand for computing has "gone up substantially" in recent months. These comments helped reassure the market that the AI boom is supported by genuine demand, calming fears that were sparked a day earlier by a report questioning the profitability of Oracle's cloud business. The rally was strong enough to put the information technology sector on pace for a fresh closing high. This upward momentum occurred despite potential headwinds from an ongoing U.S. government shutdown, which entered its second week.
CrowdStrike is up 46.3% since the beginning of the year, and at $508.31 per share, it is trading close to its 52-week high of $514.10 from July 2025. Investors who bought $1,000 worth of CrowdStrike’s shares 5 years ago would now be looking at an investment worth $3,327.
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