Source: Zhitong Finance.
The latest developments in Sino-U.S. trade relations have already sparked positive responses in the market, especially in industries such as shipping, Semiconductors, and Logistics.
From May 10 to 11 local time, high-level economic and trade talks were held between China and the United States in Geneva, Switzerland. A series of important consensuses were reached, and substantial progress was made. On May 12 local time, China and the United States issued a joint statement from the Geneva economic and trade talks. A spokesperson for China's Ministry of Commerce commented on the joint statement, stating that the high-level economic and trade talks between China and the United States achieved substantial progress, significantly lowered bilateral tariff levels, with the U.S. canceling a total of 91% of the additional tariffs, and China correspondingly canceled 91% of the countermeasures; the U.S. suspended the implementation of 24% of the "reciprocal tariffs", and China also correspondingly suspended the implementation of 24% of the countermeasures.
As the tension between China and the United States eases, investors anticipate that this will promote cross-border Trade, reduce input costs, and alleviate supply chain pressures in key industries. The latest developments in China-U.S. trade relations have already triggered a positive reaction in the market, especially in the shipping, Semiconductors, and Logistics industries.
The following are the stocks most likely to benefit from the significant decrease in bilateral tariffs between China and the United States, along with their performance during Monday's Pre-Market Trading.
Shipping and Logistics
At the beginning of Monday's U.S. stock market,$ZIM Integrated Shipping (ZIM.US)$、 $Matson (MATX.US)$ Increased by more than 17%,$FedEx (FDX.US)$rising over 9%,$United Parcel Service (UPS.US)$Increased by more than 6%. These companies directly benefit from the increase in trade volume and the facilitation of cross-border Transportation. The substantial reduction in tariffs enables faster and more cost-effective Transportation, enhancing the profits of Global Logistics companies.
Semiconductors
On Monday, Pre-Market Trading opened, $NVIDIA (NVDA.US)$it rose nearly 4%, $Micron Technology (MU.US)$Increased by nearly 8%, $Advanced Micro Devices (AMD.US)$ it rose nearly 6%, $Marvell Technology (MRVL.US)$rose nearly 7%,$Taiwan Semiconductor (TSM.US)$Increased by over 5%. The tariff reductions can alleviate supply chain disruptions and lower costs for chip manufacturers. In particular, the tariff reductions on Components from China may ease production bottlenecks, increase capacity, and reduce production costs.
Retailers
At the beginning of Monday's U.S. stock market,$Amazon (AMZN.US)$Increased by nearly 7%, $Target (TGT.US)$ rising nearly 6%, $Kohl's Corp (KSS.US)$ Increased by over 12%. Lower import costs may improve the gross margin of large retailers reliant on Chinese commodities and enhance their pricing power, putting them in a favorable position.
Autos and Components
At the beginning of Monday's U.S. stock market,$Tesla (TSLA.US)$rose nearly 5%.$Ford Motor (F.US)$rising nearly 3%, $General Motors (GM.US)$ Increased by more than 4%. Auto Manufacturers will benefit from the low input costs of Metal and Electronic products. Lowering tariffs on Metal and Electronic products can reduce manufacturing costs, thereby improving the profitability of major Auto Manufacturers.
Industrial Equipment
At the beginning of Monday's U.S. stock market,$Caterpillar (CAT.US)$up nearly 6%.$Deere (DE.US)$Increased by more than 3%. The tariff exemptions on mechanical components may improve the profit margins and capacity of companies that rely on imported components for manufacturing industrial equipment.
Consumer Electronics
On Monday, at the beginning of the U.S. stock market, $Apple (AAPL.US)$ Increased by more than 6%,$Dell Technologies (DELL.US)$Increased by nearly 5%. Saving supply chain costs can enhance profitability, especially for companies like Apple that have a supply chain centered in China.
Airlines
At the beginning of Monday's U.S. stock market,$United Airlines (UAL.US)$up nearly 6%.$American Airlines (AAL.US)$Increased by over 7%.$Delta Air Lines (DAL.US)$rose nearly 7%,$JetBlue Airways (JBLU.US)$Increased by over 6%. The reduction in tariffs can lower operating costs, including aircraft components and repair materials. At the same time, the strengthening of global trade may boost demand for air freight.
Chinese technology giants listed in the US.
On Monday, at the beginning of the U.S. stock market, $PDD Holdings (PDD.US)$ Increased by over 8%,$Alibaba (BABA.US)$increased over 6%, $JD.com (JD.US)$ it rose nearly 6%, $Baidu (BIDU.US)$Increased by nearly 4%. These companies are directly affected by the China-U.S. trade relations, and the reduction of tariffs can alleviate their supply chain pressure and improve market access conditions.
Editor/jayden
