The Bulls Are Back After the Tariff Truce… But Here’s One Reason to Hold Off on That “All In” Button
For a lot of people, Mondays usually feel like a cruel joke from the universe. You wake up five minutes late, hit your mailbox reversing out of the driveway, and walk into the office only to find out Susan, Brian, and literally half the staff are “sick,” which means your workload just quintupled. But today is not that kind of Monday.

Today, the market woke up like it just got eight hours of sleep, hit every green light, and found a surprise bonus check in the mail from that one long lost relative. Dow futures are up 1,000 points (2.4%). S&P 500 futures soared 3.1%. And everyone’s favorite index, The Nasdaq, is up 4.1%. Even Best Buy’s stock woke up and chose violence… jumping 8% in the premarket.
So what in the “land of make believe" is going on? Over the weekend, U.S. Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng linked up in Geneva and essentially hit pause on the world’s biggest economic trade war we’ve seen in decades. They miraculously agreed to cut reciprocal tariffs by 115%... dropping U.S. tariffs on Chinese goods from a punishing 145% to 30%, and China's duties on U.S. imports from 125% to 10%.

Which means, for 90 days, it’s trade peace on Earth. Or at least a ceasefire. Think of it as relationship counseling for the world’s two biggest economies… lots of passive-aggressive emails, but no plates being thrown. Yet. Scott Bessent called the talks “very productive,” and he added that both sides concluded “we have a shared interest,” as in “let’s stop losing money.”
As the news hit, bulls stampeded. Amazon and Apple shot up 8% and 7%, respectively. Dell and On Semi spiked. Even the shipping giant Maersk exploded 12%, as investors bet on a wave of pent-up demand crashing back into the supply chain now that companies can start ordering again without a 145% penalty.

Unlike what we’ve received for the last month, this wasn’t another round of vague promises or diplomatic fluff. Markets have been starving for clarity, and what they got was a surprisingly concrete step forward. And the euphoria didn’t stop at U.S. borders. Europe’s Stoxx 600 crept up 1%, Germany’s DAX hit a one-year high, and Hong Kong’s Hang Seng Index jumped 3%. After weeks of staring down the barrel of economic uncertainty, global markets suddenly had a reason to rally… and they took it and ran.
This wasn’t supposed to happen. Analysts were expecting a generic joint statement about “productive conversations” and an agreement to “continue dialogue,” which usually translates to, “We’ll talk again in six months and accomplish nothing.” Instead, they got a full-on rollback and a semi-coherent plan for the next three months.

Dan Ives at Wedbush said the agreement could put new highs for tech and broader markets back on the table by 2025. Deutsche Bank told clients the deal was even better than their already constructive view heading into the week. And while the European Chamber of Commerce was cautious in tone, it acknowledged that the deal significantly reduced near-term uncertainty… something businesses desperately needed.
But don’t sell all your T-Bills and throw all of your money into the market just yet. As encouraging as this progress is, the deal has an expiration date. The tariff reductions are temporary… a 90-day window to keep talking. And some major tariffs, including the 20% levies tied to fentanyl-related concerns, remain in place.

On top of that, China has already begun internal meetings to reassess its control over strategic exports, including rare earth minerals. That move could turn into another friction point depending on how the talks develop.
In other words, we’re not out of the woods. More like we’ve found a small clearing and pitched a tent. A very expensive, very temporary tent.
PS: It’s a mess out there.
One day the market’s ripping, the next day it’s Black Monday all over again. Recent earning’s reports have been a total coin flip. One stock beats and explodes 30%… the next misses by a penny and gets sent to the Shadow Realm. And through it all, everyone’s begging for Jerome Powell to finally cave and cut rates.
But underneath all the panic headlines (“Inflation too sticky!” “Recession imminent!” “Tariffs round 4 incoming!”) something wild is happening…
We’re seeing violent price action. Especially in the small-cap space, where low floats and high anxiety are creating the perfect recipe for 100%+ pops before lunchtime. Some of these names are moving 200%+ in under 24 hours… and to our knowledge, NO ONE else is covering them.
Except us.
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Stock.News has positions in Amazon, Apple, and Dell.