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Bloomberg
The partial US-China trade agreement is a “game changer†for technology stocks, at least according to one analyst.
The deal announced by President Trump in the last hour of trading points to “brighter days†in relations between the two countries and makes it unlikely the US will follow through with the more than $160 billion in tariffs slated to take effect from December 15, Wedbush Securities analyst Daniel Ives said.
Concerns around those tariffs have resulted in a 10% to 15% discount on US technology stocks by his estimation and the removal could “unleash a ‘risk on’ scenario†into year-end.
Technology stocks had rallied throughout the session on speculation that some form of trade agreement was near. The shares pared some of those gains as investors realised that several of the thorniest issues, including those related to Huawei Technologies, remain unresolved. Huawei, which was blacklisted earlier this year, is a major buyer of US electronic components.