US China Trade Deal Stock market Bullish Analyst reaction

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Bullish analyst on China trade news: “Best case scenario”

Wedbush Securities tech analyst Dan Ives, unofficial embodiment of the market’s bullish vibe, likes the sound of the Switzerland deal.

Matt Phillips

5/12/25 9:26AM

Stocks charged out of the gate Monday, with half the early gains for the SPDR S&P 500 ETF driven by megacap tech shares like Apple, Amazon, and Nvidia.

The catalyst, of course, is the fact that China and the US de-escalated the trade war after weekend talks in Geneva, with both sides reducing their tariff levels and announcing another 90-day truce to allow for more negotiation.

Wedbush Securities analyst Dan Ives, an impassioned tech stock and market bull, had this to say:

“This is very bullish news for the tech trade as the supply chain concerns will now be significantly reduced... although there is more wood to chop around chip restrictions (H20/Nvidia) and other issues in the AI trade that need to be addressed as part of a broader deal with US/China. This morning is a huge win for the bulls and a best case scenario post this weekend in our view.”

With stocks up nearly 3% in early trading — on track for the second-best day of the year besides President Trump’s trade truce announcement on April 9, which sent the index up 9.5% — it seems like plenty of investors share Ives’ sentiments.

Toby Bochan, Luke Kawa

Market Wrap

10m

US stocks close at record highs on US-China trade truce optimism

The S&P 500, Nasdaq 100, and Russell 2000 all started off the week with record highs ahead of a big earnings week, with five of the members of Magnificent 7 reporting.

Max Knoblauch1h

Bullish options flows boost Rivian

EV maker Rivian is up nearly 5% on Monday afternoon as bullish options flows lift the stock ahead of its third-quarter earnings, set to drop next week.

According to Bloomberg, Rivian call options traded outnumber put options more than five to one, for a put/call ratio of less than 0.2 as of 2:38 p.m. ET. That’s significantly less than the 20-day put/call average of 0.4. More than 116,000 call options have changed hands, more than 60% above the full-day average over the past 20 days.

Rivian’s upcoming earnings will measure the automaker’s sales ahead of the expiration of the $7,500 EV tax credit. Since September, Rivian has performed two rounds of layoffs as it seeks to cut costs amid the end of regulatory credits and ahead of next year’s lower-cost SUV launch.

Matt Phillips3h

Palantir inks defense deal with Poland, touches new intraday high

Palantir Technologies touched a new intraday high of $192.83 early Monday, as the company rode the China trade truce rally in AI tech stocks and retail favorites.

Palantir also signed a new deal to supply the government of Poland with data, AI, and cybersecurity software, according to Bloomberg.

Polish Minister of Defense Wladyslaw Kosiniak-Kamysz and Palantir CEO Alex Karp signed the letter of intent on the deal, about which few details were released. Polish officials did signal that they were interested in Palantir software systems for “battlefield management” and logistics. Up more than 150% this year, Palantir reports Q3 earnings on November 3.

Poland Signs Palantir, Anduril Deals Amid Record Army Spending

J. Edward Moreno4h

Intellia tanks as it pauses late-stage CRISPR gene-editing trials after one patient was hospitalized

Intellia dropped sharply on Monday after it announced that it’s pausing two late-stage CRISPR gene-editing trials because one patient was hospitalized with liver damage.

Intellia had also disclosed in May that a patient had experienced elevated liver enzymes. The news is a major setback for the company, which currently has no products on the market and is working on a one-time treatment for heart and nerve conditions.

The news dragged down other companies working on CRISPR treatments, including Beam Therapeutics Inc, Crispr Therapeutics, Editas Medicine, and Prime Medicine.

Luke Kawa4h

Gold craters as retail traders pull money from commodity ETFs

As its fierce rally begins to fade, it looks like retail traders are waving au revoir to gold.

JPMorgan strategist Arun Jain noted that retail traders have pulled about $120 million from commodity ETFs as of 11 a.m. ET on Monday, a level that stands in the 0.4th percentile relative to its one-year average. The SPDR Gold Shares ETF is down 2.8% as of 11:53 a.m. ET after suffering its worst loss since April 2013 last Tuesday. That day, retail had pulled just $50 million from commodity ETFs by 11 a.m.

The five-session average daily flows into the product hit an all-time high of nearly $1.1 billion last Monday as gold and silver had effectively become the new meme stocks, displaying strong momentum and heavy options activity.