US stocks soar as Trump slashes reciprocal tariffs for 90 days

Monday’s fake news is Wednesday’s rocket fuel for the stock market.

The S&P 500, Nasdaq 100, and Russell 2000 surged after President Donald Trump said he was reducing the reciprocal tariff to 10% for 90 days for nonretailiating countries (which obviously excludes China from relief, as he announced that levies were hiked to 125%).

In listing policy options the Trump administration could have pursued that would’ve been less disruptive for markets, Neil Dutta of Renaissance Macro Research emphasized a more focused approach on China — which has a massive trade surplus and trade practices that have drawn the ire of most major economies — rather than the across-the-board approach outlined during the Rose Garden acnnouncement last Wednesday.

“Starting a trade skirmish with Canada and Mexico first instead of China was pointless,” he wrote.

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Max Knoblauch21m

Ethanol players climb following the Trump administration’s move to waive summer gas regulations

Ethanol-exposed companies are climbing on Thursday, following the Trump administration’s move yesterday to waive summertime limitations on the sale of E15 gas, a blend of fuel containing 15% ethanol.

Sale of the higher-ethanol blend is limited in about half of the US over the summer months to lessen smog. Including this year, those limitations have been waived for five summers in a row. According to Axios reporting, E15 typically costs about $0.10 to $0.40 less per gallon while delivering slightly lower fuel economy.

Ethanol companies are climbing on the decision, with Rex American Resources up more than 5%, Green Plains up 3%, and Gevo up about 2%. Rex and Gevo also closed higher on Wednesday.

Stocks fall as oil prices rise

Sometimes there’s only one story in the markets. This is one of those times.

Matt Phillips1h

Hyunsoo Rim5h

Super Micro drops on shareholder lawsuit alleging securities fraud around China chip smuggling

Super Micro Computer fell more than 4.5% at one point in premarket trading Thursday on news that shareholders are suing the company, alleging securities fraud after its cofounder and two others were charged with illegally smuggling chips to China.

The lawsuit follows a US criminal indictment that was unsealed last week and accuses the company’s cofounder, sales manager, and a contractor of illegally diverting $2.5 billion worth of AI servers containing Nvidia chips to China, in violation of US export controls. The initial news sent the stock plunging 33% in a single day, wiping out billions in market cap.

While the company wasn’t named as a defendant in the Department of Justice indictment, it announced its cofounder’s resignation and stated that it’s been “cooperating fully with the government’s investigation and will continue to do so.”

According to the complaint filed in San Francisco federal court and viewed by Reuters, shareholders allege the company inflated its stock by overstating its business outlook, while concealing its significant reliance on China sales and “material weakness” in its compliance with export control regulations.

Super Micro sued by shareholders over China-related criminal case against co-founder, others

Toby Bochan

Market Wrap

20h

Stocks rise amid optimism around US peace plan for Iran

Gains in technology supported the broader market rally.

Max Knoblauch23h

JetBlue surges following report it is exploring potential merger partners

Shares of JetBlue spiked more than 15% midday Wednesday following a Semafor report that the airline is exploring merger partners.

The company has explored Washington’s regulatory temperature around a potential merger with United Airlines, Southwest Airlines, and Alaska Air, per the report. When Semafor reached out to JetBlue regarding the exploration, it declined to comment.

JetBlue’s attempt to acquire budget rival Spirit was blocked by the Biden administration in 2024.

Exclusive: JetBlue explores potential merger partners

JetBlue’s attempt to acquire budget rival Spirit was blocked by the Biden administration in 2024.

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