As a result of trade negotiations between the United States and China, both countries agreed to reduce tariff rates by 115 percentage points each for 90 days, leading to a surge in stock prices of the preferred stocks of overseas individual investors in U.S. stocks.
Tesla shares, which are the most held by domestic investors, traded at $315.06 on the Nasdaq at 9:50 a.m. on the 12th (local time). The stock price rose by 5.65% ($16.85) compared to the previous trading day. This is the first time Tesla's stock price has surpassed $300 during trading since March.
The second largest holding, NVIDIA, also traded at $121.85, up 4.45% ($5.20) at the same time. In addition, shares of Palantir Technologies, Apple, and Microsoft are also on the rise.
Leveraged exchange-traded funds (ETFs), which overseas individual investors actively invest in, also showed a significant increase. The 'TQQQ,' which tracks the daily increase of the Nasdaq 100 index by three times, rose by nearly 10%, and the 'SOXL,' which tracks the U.S. semiconductor index by three times, showed an increase of over 18%.
President Trump caused significant fluctuations in the U.S. stock market on April 2, known as 'Liberation Day,' by imposing universal and reciprocal tariffs. After initially suspending the tariffs, the stock market has not fully recovered from the losses.
However, after the announcement of the U.S.-China negotiation results on this day, the uncertainty has decreased, acting as a driving force for stock price increases. The United States and China agreed to lower tariff rates for 90 days after two days of negotiations that began on the 10th in Geneva, Switzerland. Starting on the 14th, the tariff imposed by the U.S. on Chinese products will be reduced from 145% to 30%, while the tariff imposed by China on U.S. products will be lowered from 125% to 10%.