Wedbush Analyst Dan Ives Believes Trump Has Removed “Doomsday Scenario” for Tech Stocks, Predicting a Monday Rally Despite Options Market Veteran Warning of “Crowded Trade”

Wedbush Analyst Dan Ives Believes Trump Has Removed “Doomsday Scenario” for Tech Stocks, Predicting a Monday Rally Despite Options Market Veteran Warning of “Crowded Trade”

This is not investment advice. The author has no position in any of the stocks mentioned.

Market Reactions and Tariff Adjustments

Earlier this week, the global markets demonstrated their influence by prompting an unexpected reduction in tariffs imposed by the Trump administration. The President effectively agreed to a universal import tariff rate of 10% for all US trading partners, excluding China, which continues to face a steep tariff of 145%.This shift in policy was likely catalyzed by significant volatility in the bond market, raising concerns among investors and policymakers alike.

Recent Tariff Exemptions on Electronics

Following the recent developments, President Trump announced a reversal of tariffs on semiconductors and electronic products, including Apple’s iPhones, thereby lowering the effective tariff on Chinese imports to 104%.However, it is essential to note that imported semiconductors, smartphones, and other electronic goods from China are still subject to the original 20% IEEPA tariffs, creating a complex tariff landscape for these vital commodities.

Ongoing Confusion and Market Speculation

Adding to market uncertainty, US Commerce Secretary Howard Lutnick revealed that new sectoral tariffs on pharmaceuticals, semiconductors, and electronic items are still forthcoming and may be implemented within the next month. This announcement has left many analysts and investors in a state of confusion regarding future trade policies.

Dan Ives from Wedbush believes that the immediate threat of a doomsday scenario has been alleviated, which might support a rally in tech stocks as investors regain some confidence. However, the forthcoming sectoral tariffs are likely to foster an ongoing environment of confusion, complicating strategic planning for companies in the affected industries.

“The mass confusion created by this constant news flow out of the White House is dizzying for the industry and investors, and it is generating massive uncertainty and chaos for companies trying to plan their supply chain, inventory, and demand.”

Traders’ Perspectives and Market Movements

Given these developments, some traders believe that optimism may lead to short-term upside in the market. However, there is an underlying sentiment of caution. A seasoned options trader noted that the market might see a “crowded trade for the upside”in the upcoming days, yet anticipates “one more larger dip in the next 4-6 weeks.”

As the situation continues to evolve, traders and investors remain vigilant, navigating the unpredictable waters of tariff changes and market dynamics. For ongoing analysis and strategic insights, please refer to expert commentary from market analysts.

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