- Stocks rise across Asia on US-China trade truce
Asian stocks followed gains in US equities on optimism the US-China trade truce marks the end to an all
out tariff war. Shares in Australia and Japan jumped at the open after the S&P 500 closed more than 3%
higher. Japan’s Topix gained for a 13th day, putting it on track for it longest winning streak in 16 years. A gauge
of US-listed Chinese stocks surged 5.4% on Monday in its best session in over two months. The dollar was little
changed in Asia after jumping Monday. - Dow jumps more than 1,100 points, S&P 500 rises 3% on China-U.S. temporary tariff cut
U.S. stocks roared back on Monday after the U.S. and China agreed to temporarily slash tariffs following
negotiations over the weekend in Switzerland, raising hopes a trade war won’t push the economy into a
recession. The Dow Jones Industrial Average surged 1,160.72 points, or 2.81%, and closed at 42,410.10. The
30-stock index ended the session near its highs of the day, with buying enthusiasm remaining strong. The S&P
500 popped 3.26% to end at 5,844.19, bringing its gain since its April intraday low at the height of tariff
pessimism to more than 20%. The benchmark has cut its year-to-date losses to just 0.6%. The Nasdaq
Composite added 4.35% and settled at 18,708.34, as the initial China agreement sent technology stocks tied to
the country — like Tesla and Apple — flying higher. It was the best day since April 9 for all three indexes. - Oil falls as concerns over rising supplies overshadow U.S.-China trade relief
Oil prices eased on Tuesday from a two-week high, weighed down by concerns about rising supplies, despite
earlier optimism over the pause in the U.S.-China trade war after both countries temporarily cut tariffs.
Brent crude futures dropped 22 cents, or 0.3%, to $64.74 per barrel by 0248 GMT. U.S. West Texas
Intermediate (WTI) crude fell 18 cents, or 0.3%, to $61.77. Both benchmarks closed about 1.5% higher on
Monday at their steepest settlements since April 28. The gains come during a turbulent time
for global oil markets. The U.S. and China agreed to slash steep tariffs for at least 90 days, sending Wall Street
stocks, the U.S. dollar and crude prices sharply higher on Monday. “While a thawing in trade tensions between
China and the US is helpful, there’s still plenty of uncertainty over what happens in 90 days. This uncertainty
could continue to generate headwinds for oil demand,” ING analysts said in an email to clients. But underlying
schisms that led to the dispute remain, including the U.S. trade deficit with China and U.S. President Donald
Trump’s demand for more action from Beijing to combat the U.S. fentanyl crisis. Markets were also eyeing
rising supplies as a key driver for oil price weakness. - Gold languishes near more than 1-week low after US-China tariff truce
Gold prices on Tuesday were hovering near a more than one-week low hit in the previous session, as a U.S.
China agreement to temporarily halt reciprocal tariffs boosted risk appetite, diminishing gold’s safe-haven
appeal. Spot gold held steady at $3,230.99 an ounce, as of 0309 GMT. Bullion recorded a 2.7% decline in the
previous session. U.S. gold futures were up 0.2% to $3,235.20. After two days of negotiations in Geneva, U.S.
and China announced tariff reductions for the next three months, with U.S. tariffs on Chinese imports dropping
from 145% to 30% and Chinese duties on U.S. imports falling from 125% to 10%, leading to a surge in global
shares. The U.S. and China had imposed tit-for-tat tariffs on each other last month, triggering a trade war.
“The prospect of better trade relations between the world’s two largest economies has caused a pick-up in risk
appetite and a pullback in safe haven demand,” said KCM Trade Chief Market Analyst Tim Waterer. - China sees the U.S. trade deal as a huge win for Beijing
Chinese officials, influencers and state-run media on Monday were casting the initial trade agreement and 90
day tariff pause with the U.S. as a victory and a vindication of Beijing’s negotiating strategy. They are arguing
that their defiant public posture worked and was a major reason they were able to strike a deal with U.S.
officials in Switzerland with relatively few concessions. “China’s firm countermeasures and resolute stance
have been highly effective,” said a social media account linked to China’s national broadcaster CCTV. In the
eyes of the Chinese public, negotiators from Beijing appear to have convinced President Donald
Trump’s administration to roll back most of the 145% tariff rate that Trump imposed, and slash them to 30%.
In exchange, China pledged to roll back most of the countertariffs it announced against the U.S. On social
media, Chinese users are touting the deal. One hashtag, #USChinaSuspending24%TariffsWithin90Days, already
has 420 million views on Weibo. The line refers to a 24% figure cited near the top of the joint statement
Washington and Beijing released. In total, the 90-day pause drops U.S. import duties from 145% to 30% on
Chinese goods, and Chinese tariffs on U.S. goods from 125% to 10%. - Trump heads to the Middle East with oil, trade and nuclear ambitions on the table
High on the agenda will likely be Israel-Gaza war ceasefire talks, oil, trade, investment deals, and potential
announcements in the areas of advanced semiconductor exports and nuclear programs. Top of mind for
leaders in the UAE and Saudi Arabia is the future of U.S. semiconductor exports, the most advanced of which
they so far have not gained access to due to national security concerns. Trump has long enjoyed a warm
relationship with Gulf Arab states, in particular the UAE and Saudi Arabia, where his children have several
business ventures and planned real estate projects. - Coinbase joining S&P 500 days after bitcoin soared past $100,000
Coinbase is joining the S&P 500, replacing Discover Financial, which is being acquired. Shares of the crypto
exchange soared in extended trading after the announcement. Bitcoin eclipsed the $100,000 market last week,
approaching its record reached in January. - Shares of PDD Holdings, the owner of online retailer Temu, rise as much as 9.5%, the most intraday since
Dec. 9, after an agreement between the US and China to temporarily lower tariffs on each other’s products
prompted Citi analyst Alicia Yap to raise her rating to buy from neutral on view that the “tariff overhang” is
“largely reduced.”
“We view the bigger-than-expected and sooner-than-expected tariff reduction as a positive outcome for China
cross-border sellers and positive read-through to Temu US sales,” Yap writes. While no change on the removal
of $800 de minimis rule, the 30%+ tariff is “manageable” for Chinese sellers, with part of the tariff likely to be
passed onto US consumers, and some offset by “expense optimization through ad spend and production cost
reduction with focus on selling higher quality goods” with higher average selling prices, she says. PT to $165
from $127. Elsewhere, Morgan Stanley reiterates Top Pick designation for PDD, stating that the “US-China tariff
de-escalation arrived faster and deeper than the market expected”. “‘Although there are still various
uncertainties – such as how fast Temu’s US business could recover and how Temu could absorb the incremental
tariff cost – we expect that Temu could restart its fully entrusted business model in the US and have enhanced
pricing advantage in its semi-entrusted model. This is positive for Temu,” analyst Eddy Wang writes. - KindlyMD shares skyrocket 600% after merger with Trump crypto advisor David Bailey’s bitcoin
investment company
Shares of KindlyMD skyrocketed 600% Monday after the healthcare company announced a merger with
Nakamoto Holdings, a bitcoin investment company founded by David Bailey, a key cryptocurrency advisor to
President Donald Trump. The newly formed company has secured $200 million in convertible debt and $510
million in fresh capital through a private investment in public equity (PIPE) deal, offering shares at $1.12 each.
The raise drew support from more than 200 investors, including Actai Ventures, Arrington Capital, BSQ Capital
Partners, Kingsway, Van Eck, and Yorkville Advisors. - Pharma stocks mixed as Trump vows to slash U.S. drug prices
Global pharmaceutical stocks were mixed Monday after U.S. President Donald Trump signed an executive order
aimed at reducing prescription drug prices in the United States by between 30%-80%. The policy, known as
“most favored nation” pricing, would align U.S. drug costs with those of other high-income countries, Trump
said in a social media post on Sunday. This could potentially impact the profitability of European and Asian
drugmakers heavily reliant on the U.S. market, where consumers currently pay almost three times more for
many prescription drugs than other wealthy nations. In a Truth Social post on Monday, Trump wrote: “DRUG
PRICES TO BE CUT BY 59%, PLUS! Gasoline, Energy, Groceries, and all other costs, DOWN. NO INFLATION!!!”
“Starting today, the United States will no longer subsidize the healthcare of foreign countries… and we’ll no
longer tolerate profiteering and price gouging from Big Pharma,” Trump said in a press conference Monday
morning. Trump stated that while the U.S. has less than 5% of the world’s population, 75% of drug companies’
revenue comes from the U.S. The President explicitly called out the weight loss drug makers for charging
significantly more in the U.S. than in other nations. “Ozempic costs 10 times more in the U.S.,” he said. Ozempic
and Wegovy are manufactured by Novo Nordisk (CSE:NOVOb) (NYSE:NVO), and Zebound is made by Eli Lilly
(NYSE:LLY). Novo shares fell 1%, and Eli Lilly traded flat. Both traded up from session lows. - AST SpaceMobile beats Q1 earnings, stock rises on launch plans
AST SpaceMobile, Inc. (NASDAQ:ASTS) reported better-than-expected first quarter earnings on Thursday,
sending its shares up 3.8% as the company unveiled plans for multiple satellite launches in the coming months.
The space-based cellular broadband network provider posted a Q1 adjusted loss of $0.20 per share, beating
analyst estimates of a $0.26 loss. However, revenue fell short at $7.18 million compared to expectations of
$10.94 million. AST SpaceMobile announced a multi-provider satellite orbital launch plan with five contracted
launches scheduled over the next six to nine months. The company expects to conduct orbital launches every
one to two months on average during 2025 and 2026. “We are at an inflection point for the company,” said
Abel Avellan, Founder, Chairman and CEO of AST SpaceMobile. “We have ramped up manufacturing capacity
and are now able to announce our plans to support five scheduled orbital launches over the next six to nine
months.” The company anticipates shipping its first Block 2 BlueBird satellite in Q2 2025, with an orbital launch
scheduled for July 2025. AST SpaceMobile aims to reach a manufacturing cadence of six satellites per month
during 2025. Management expects second half 2025 revenue opportunities of $50.0 million to $75.0 million as
the company advances its network commercialization efforts. AST SpaceMobile also signed a new contract with
the Defense Innovation Unit for up to $20.0 million in revenue to support government communications. As of
March 31, 2025, the company reported $874.5 million in cash, cash equivalents, and restricted cash. Total
operating expenses for Q1 were $63.7 million, up from $60.6 million in Q4 2024. - Archer Aviation stock soars 4.2% after beating earnings estimates
Archer Aviation Inc. (NYSE:ACHR) saw its stock surge 4.2% after reporting better-than-expected first quarter
earnings, as the electric air taxi company continues to make progress towards its planned UAE launch later this
year. The urban air mobility firm reported a Q1 adjusted loss per share of -$0.17, beating analyst estimates of -$0.28 by $0.11. While Archer did not disclose revenue figures, the company highlighted several key
operational milestones achieved during the quarter. Archer reaffirmed its plans to deliver its first Midnight
aircraft to the UAE in the coming months, with commercial deployment slated for later in 2025. The company
secured design approval for the first hybrid heliport in Abu Dhabi to support these launch efforts. “Archer’s
pushing the boundaries of what’s possible and reshaping the future of aviation for years to come,” said CEO
Adam Goldstein. “This quarter, the team made strong progress across our civil and defense efforts as we
continue to deepen our strategic partner relationships and prepare for commercialization in the UAE later this
year.” The company announced its first two customers for its “Launch Edition” program: Abu Dhabi Aviation
and Ethiopian Airlines. Archer also formed a partnership with Palantir (NASDAQ:PLTR) to develop artificial
intelligence for next-generation aviation technologies. Archer ended the quarter with a strong cash position of
$1.03 billion. For Q2 2025, the company expects an adjusted EBITDA loss between $100 million to $120 million.
The positive market reaction suggests investors are encouraged by Archer’s progress towards
commercialization and its ability to exceed earnings expectations. However, the company still faces challenges
as it works to bring its electric vertical takeoff and landing (eVTOL) aircraft to market.
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