The Trump administration has just announced a mass trade transaction between the United States and China, leaving the markets delighted. The United States agreed to reduce their tariffs for China to 30% from 145% within 90 days. China will also reduce its US goods from 125% to 10% within 90 days. Although this reduction in tariffs is currently temporary, this news is very welcome for global trade. This provides a much stronger way to tariffs that constantly fall.
A The S&P 500 index increased more than 3% On Monday, after the news about the transaction crashed. This step now puts the index very close to returning green in 2025, the total profitability of approximately -1%. A good handful of shares in the index led to a double -digit percentage. However, not all shares won. Approximately 80% of S&P 500 shares increased On Monday, while the remaining 20% saw that the shares have fallen.
So, who was one of the largest winners from the news about the trade transaction? In addition, what is the famous name showed the greatest decrease in shares as a result?
SWK: The manufacturer of tools with a significant impact of China finds relief
Stanley Black and Deer Today
Stanley Black & Decker
- 52-week range
- $ 53.91
▼
$ 110.88
- Dividend yield
- 4.47%
- P/e ratio.
- 37.81
- Value is valuable
- $ 93.10
One of the largest winners of the trade transaction was Stanley Black and Deer NYSE: SWKThe rally field grew by almost 16% on May 12. This is due to the fact that the significant amount of the company’s supply chain is in China. In connection with the profit of the company on April 30, the company noted that 15% of its supply chain for products sold in the United States is located in China. Even after the mitigation efforts, he expected that trade policy would negatively affect his adjusted profit per share by 0.75 US dollars. This is very significant 16% of the total adjusted EPS created by the company over the past 12 months.
Now the company is likely to see a much less negative impact on its income, which is the cause of a huge positive movement. Even with these tariff news, Stanley Black and Deer are unlikely to remain in place. The company plans a long -term plan to reduce the impact of sales in the United States to China.
In the first period of Trump, 40% of the sales of the company in the United States came from his Chinese supply chain. The company said that it plans to reduce this figure to almost 0% in the coming years, from 15% now. The company will reasonably continue this path, given that the trading situation can easily worsen.
Two -digit days for two notch notch chips
Monolithic energy systems today
Monolithic energy systems
- 52-week range
- $ 438.86
▼
$ 959.64
- Dividend yield
- 0.87%
- P/e ratio.
- 19.43
- Value is valuable
- $ 779.83
In particular, two semiconductor shares were also large winners. Monolithic energy systems NASDAQ: MPWR The shares saw more than 11%, while Microchip technology NASDAQ: Mchp More than 10%grew. This big step makes sense for the monolith, given that 37% of its sales come from China. Nevertheless, the company emphasized in its last income that it did not predict any significant impact on his business from tariffs.
The monolithic noted that part of its supply chain in China creates its own Chinese sales, which significantly softens direct tariff effects. However, it is possible that the company has undermined the possible The influence of tariffsThe field trading transaction ensures greater confidence that the company will not have a great influence on the tariff. It also increases demand expectations, since the tariff costs that companies face in other areas could lead to a smaller number of expenses for monolith.
Microchip technology today
Microchip technology
- 52-week range
- $ 34,13
▼
$ 100.57
- Dividend yield
- 2.96%
- P/e ratio.
- 109.24
- Value is valuable
- $ 67.42
Microchip also spent a great day, despite the fact that he does not see any tariff effects on his call on May 8. The company noted that the semiconductors, which it is supplied to both the United States and China, are largely exempted from tariffs. The argument associated with the demand, discussed for the monolith, also probably plays a large role in the increase in the action.
In addition, the transaction ensures increased confidence that the company’s chips will ultimately not lose exemption from tariffs. About 18% of net sales of the company came from China in the fourth year 2024, which made the news of a trading transaction, still positive for the company.
The Gold trading transaction reaction tunes along NewMont
NewMont Today
- 52-week range
- $ 36.86
▼
$ 58.72
- Dividend yield
- 2.00%
- P/e ratio.
- 01/17
- Value is valuable
- $ 55.63
S&P 500, which saw the shares, was NewMont most on May 12 NYSE: Nowhich decreased by almost 6%. The fall was associated with the negative impact of the trading transaction on the main product NewMont: gold. Gold prices fell by about 3%, taking NewMont shares with them.
Gold grows strongly because Trump’s trading battles increased global economic uncertainty. Significant trade progress currently reduces uncertainty, which leads to a drop in gold. Gold miners usually trade with greater volatility than gold, given the enhanced drop in NewMont shares compared to metal.
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