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:
- Professional Staffing & HR Solutions company Robert Half (NYSE: RHI) jumped 6.5%. Is now the time to buy Robert Half? Access our full analysis report here, it’s free.
- Data & Business Process Services company TransUnion (NYSE: TRU) jumped 6.6%. Is now the time to buy TransUnion? Access our full analysis report here, it’s free.
- Digital Media & Content Platforms company Ziff Davis (NASDAQ: ZD) jumped 10.1%. Is now the time to buy Ziff Davis? Access our full analysis report here, it’s free.
- Professional Staffing & HR Solutions company ManpowerGroup (NYSE: MAN) jumped 5.3%. Is now the time to buy ManpowerGroup? Access our full analysis report here, it’s free.
- Automobile Manufacturing company Lucid (NASDAQ: LCID) jumped 6.8%. Is now the time to buy Lucid? Access our full analysis report here, it’s free.
Zooming In On Ziff Davis (ZD)
Ziff Davis’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. But moves this big are rare even for Ziff Davis and indicate this news significantly impacted the market’s perception of the business.
Ziff Davis is down 38% since the beginning of the year, and at $33.95 per share, it is trading 43.4% below its 52-week high of $59.99 from December 2024. Investors who bought $1,000 worth of Ziff Davis’s shares 5 years ago would now be looking at an investment worth $470.81.
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