Tech Stocks Rally on Optimism of U.S.-China Trade Deal Breakthrough

U.S. tech stocks continued their upward momentum on Wednesday as investors regained their appetite for risk following news of a breakthrough in U.S.-China trade negotiations earlier in the week. This development has renewed hopes for a more stable global trade outlook.

The Nasdaq 100 rose by 0.5% in midday trading, reaching levels not seen since late February. The rally was led by heavyweight chipmakers, with Nvidia Corp. (NVDA) surging 4% and Advanced Micro Devices Inc. (AMD) jumping 5%.

Investors are also optimistic about potential large-scale investments from Gulf nations into U.S. tech and semiconductor sectors, as President Donald Trump secured new economic agreements with Middle Eastern countries, including Saudi Arabia and Syria.

While the Nasdaq saw gains, the S&P 500 remained stagnant and both the Dow Jones Industrial Average and Russell 2000 saw slight declines, indicating a more selective rally focused on high-growth sectors.

Clean energy and solar stocks also outperformed, building on strong gains from Tuesday. This was largely due to investors’ positive reaction to a less severe revision to clean energy tax credits in the latest Republican tax proposal.

However, the commodity space told a different story, with gold prices dropping nearly 2% and breaking below $3,200 per ounce for the first time in over a month. This week, gold is on track for its worst performance since November