Stock Market Surges as Trump Delays Tariffs – Nvidia and Tesla Lead the Rally

The U.S. stock market experienced a strong surge on February 13, 2025, as investors responded positively to encouraging economic data and a key decision by President Donald Trump. The Dow Jones Industrial Average jumped 342 points, with the S&P 500 and Nasdaq also posting substantial gains. Investor confidence was particularly evident in the tech sector, where major players like Nvidia and Tesla saw significant advances.

One of the biggest drivers of the day’s market rally was Trump’s decision to delay new tariffs on foreign goods. While he signed a memorandum to examine reciprocal tariffs, he opted against immediate action, bringing relief to Wall Street amid concerns about escalating trade restrictions. Trump did, however, hint at potential tariffs on auto imports in the future. For the time being, investors viewed the delay as a positive development, pushing stocks higher across multiple sectors.

Tech stocks played a crucial role in the day’s market movements. Nvidia surged 3.2% after Hewlett Packard Enterprise announced that it had shipped its first Nvidia Blackwell system (GB200 NVL72), reinforcing optimism about Nvidia’s leadership in AI and high-performance computing. Tesla soared 5.8%, continuing its recent upward momentum. The broader resurgence in tech stocks was also aided by favorable inflation data. Notably, AppLovin saw an astonishing 24% gain, driven by strong earnings results.

Economic indicators also provided valuable insights for the market. The Producer Price Index for January 2025 climbed 0.4%, slightly above expectations of 0.3%. However, the core PPI, which excludes food and energy, met forecasts at 0.3%, indicating stable inflationary pressures. Additionally, the 10-year Treasury yield fell by 10 basis points to 4.531%, giving investors some relief from concerns about high borrowing costs. Market analysts highlighted the 4.5% yield threshold as a key level to watch in the coming weeks.

Beyond the tech sector, casino stocks had an impressive day. MGM Resorts surged 18% following strong Q4 earnings and notable growth in China. Other major casino stocks, including Caesars and Wynn Resorts, also gained momentum, rising 8% and 3% respectively. However, not all sectors benefited from the rally. Defense stocks struggled after Trump suggested the possibility of cutting U.S. defense spending in half while discussing military reductions with China and Russia. Lockheed Martin and Northrop Grumman both slipped by 1%, while General Dynamics recorded a 1.5% decline.

Elsewhere, Arm Holdings surged 8% as reports emerged that the company planned to start producing its own processors in 2025. Speculation about Meta being a potential buyer further fueled excitement. Robinhood also climbed 11% after reporting better-than-expected Q4 revenue of $1.01 billion. On the downside, Hanesbrands tumbled 18% following disappointing earnings and news that its CEO planned to step down. Similarly, West Pharmaceutical Services plummeted 34% after issuing weak forward guidance.

The financial developments also extended to international markets. The MSCI India Index declined by 0.2%, pushing its weekly loss to 3.1%. The drop coincided with Indian Prime Minister Narendra Modi’s visit to Washington, D.C., where discussions about trade tensions took center stage. Trump reiterated his concerns over India’s high tariffs, emphasizing the $45.7 billion U.S. trade deficit with the country in 2024. Negotiations on U.S.-India trade policies are expected to continue.

Overall, the market’s strong performance on February 13, 2025, reflected optimism fueled by favorable economic data, easing trade concerns, and strength in the tech sector. While Nvidia, Tesla, AppLovin, and MGM Resorts led the charge, uncertainties remain regarding future trade policies and potential defense budget cuts. As inflation trends and Federal Reserve actions evolve, investors will continue to assess the economic landscape and adjust their strategies accordingly.