What Happened?
A number of stocks jumped in the afternoon session after President Donald Trump eased concerns over escalating trade tensions with China, calming markets rattled by his earlier tariff threats. U.S. stocks rose sharply, with the Nasdaq-100 jumping nearly 2%, following a post on Truth Social where Trump suggested the trade conflict would not worsen. This shift in tone provided significant relief to investors, who had driven a sharp sell-off the previous Friday due to fears of higher tariffs. Technology companies with significant international supply chains and sales, such as AMD and Nvidia, led the market rally, with their shares climbing 4.2% and 3.4%, respectively. The broader market indexes, including the S&P 500 and the Dow Jones Industrial Average, also saw substantial gains, reflecting widespread optimism that a potentially damaging trade war might be averted.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Project Management Software company Asana (NYSE:ASAN) jumped 4.6%. Is now the time to buy Asana? Access our full analysis report here, it’s free for active Edge members.
- Data Infrastructure company Teradata (NYSE:TDC) jumped 4.2%. Is now the time to buy Teradata? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Asana (ASAN)
Asana’s shares are extremely volatile and have had 38 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 7.8% as President Donald Trump threatened to impose 'massive' tariffs on Chinese products, reigniting trade war fears. In a social media post, Trump stated the move was a potential countermeasure to China 'becoming very hostile,' following Beijing's announcement of new export controls on rare-earth minerals. These minerals are critical components for magnets used across the automotive, electronics, and defense industries. The unexpected development jolted Wall Street, which had been trending higher. The news sent all major indices into negative territory, with the tech-rich Nasdaq Composite falling 1.7%, the S&P 500 dropping 1.3%, and the Dow Jones Industrial Average declining by 0.9%.
Asana is down 28.1% since the beginning of the year, and at $14.28 per share, it is trading 48.1% below its 52-week high of $27.52 from December 2024. Investors who bought $1,000 worth of Asana’s shares 5 years ago would now be looking at an investment worth $585.73.
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