Trade Talks: Why Stocks Soared This Week?

U.S.-China trade talks lifted stocks in June 2025. Find out how to profit from tariff news with top picks.

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A Wild Week for Stocks

Stocks went wild this week, all thanks to a single phone call. On June 5, 2025, President Trump and China’s President Xi talked trade, and the market exploded with excitement.

The S&P 500 shot up 1.5%, hitting the big 6,000 mark for the first time since March. Companies like Boeing soared, and sectors tied to trade—like retail and materials—saw huge gains. So, what’s behind this rally, and how can you make money from it?

Below, I’ll break down why stocks jumped, which companies are hot, and how you can ride these tariff swings. We’ll share easy tips like checking “trade war” on Google and using a simple tool to time your buys. Ready to jump on this trade talk wave? Let’s dive in.

What Sparked the Rally?

The big moment came on June 5 when Trump and Xi’s call shook things up. Posts on X buzzed about high-level talks in London, where U.S. and Chinese teams worked out a plan to ease trade fights. By June 10, China’s trade minister called the talks “open and productive,” hinting at a 90-day tariff truce or even permanent cuts. This news sent stocks flying high.

The S&P 500 climbed 1.5% that day, the Dow gained 100 points, and the Nasdaq rose 0.4%. Boeing’s stock jumped as China allowed its planes to be delivered again—a clear sign of goodwill. Global markets got in on the action too, with Japan’s Nikkei and China’s CSI 300 climbing fast.

Why did this matter? The trade war had been brutal. On April 2, Trump slapped 145% tariffs on Chinese goods, and the S&P 500 crashed 4.85%, losing $2.4 trillion in value. Investors feared a recession. But now, talk of U.S. tariffs dropping to 30% and China’s to 10% gave everyone hope. Edward Jones said the market’s 20% rebound since April came from strong company profits and this trade news. TipRanks noted the S&P 500 hitting 6,000, a sign the bulls were back.

Sectors to Watch: Retail and Materials

The trade talks helped two sectors most: consumer discretionary (think retail and cars) and materials (like chemicals and steel). These areas got hit hard by tariffs but bounced back this week. Here’s why they’re hot and which stocks to watch.

Retail and Cars: Shoppers and Drivers Win

Retail and car stocks depend on global supply chains, so tariff news moves them big time. The consumer discretionary sector rose 5.5% on June 9, beating the broader market. Companies like Nike and Home Depot led as cheaper imports looked likely.

Nike (NKE): With factories in China, Nike worried about tariff costs. Lower tariffs sent its stock up 8% this week.
Ford (F): Car companies like Ford use imported parts. Trump’s softer stance on auto tariffs lifted Ford’s stock 6%.
Hasbro (HAS): The toymaker gained 14.6% after strong earnings and hopes of cheaper imported toys.

Materials: Building Blocks Get a Boost

Materials stocks, like chemical and steel companies, also jumped. Tariffs had messed with their supply chains, but the truce talk helped them gain 4% this week.

Dow Inc. (DOW): China dropped a 125% tariff on ethane, a key chemical ingredient, pushing Dow’s stock up 7%.
Nucor (NUE): Steel companies like Nucor rose 5% as tariff relief steadied global prices.

The TACO Trick: Buy Low, Sell High

Want to play tariff swings? Try the “TACO” trick—Tariff-Affected Companies Opportunistic. Buy trade-sensitive stocks when tariffs scare everyone, then sell when good news hits. For example, Boeing and Caterpillar crashed in April’s tariff panic but soared after June’s talks. Buy when fear spikes, sell when hope returns. Check Google Trends for “trade war” to spot the panic moments.

How to Play This Market

To win in this tariff-driven market, use smart tools and stay sharp. Here are three ways to get ahead.

Track “Trade War” on Google

Google Trends shows what people are worried about. When “trade war” searches spike, stocks often dip, creating buy chances. In April, searches hit a 2025 high, and the S&P 500 fell 4.85%. By June, as searches dropped, stocks rallied. Set Google alerts for “trade war” and buy oversold stocks when panic peaks.

How to Do It: Search “trade war” on Google Trends. When searches jump, check stocks like Boeing on Finviz.com for low prices.
Example: On April 7, “trade war” searches peaked. Buying Boeing at $150 led to a 15% gain by June 10.

Use MACD to Time Buys

The MACD tool helps you pick the right moment to buy. It compares short- and long-term price trends. When the fast line crosses above the slow line, it’s a buy signal. For Boeing, this happened in June, and its stock rose 10% in three days.

Setup: Use a 12-day and 26-day average. A fast line crossing above the slow line means buy.
Example: TradeStation saw the S&P 500’s MACD signal a buy on June 5, matching the 1.5% rally. Caterpillar’s MACD buy signal near $320 in June worked perfectly.
Tip: Pair MACD with support levels. Caterpillar’s $320 was its 200-day average, a strong buy point.

Spread Your Bets

Don’t put all your money in one stock. Mix retail, materials, and tech stocks like Nvidia, which rose on AI hype and trade hope. ETFs like SPY give you broad market exposure, while XLY (retail) and XLB (materials) focus on hot sectors.

Protect Your Money

Tariff talks can flip fast. Trump floated 80% tariffs on June 9, then backed off. Stay safe with these tips.

Set Stop-Loss Orders

If a stock drops too far, sell automatically. Set stop-losses 5-7% below your buy price. For Boeing at $150, a stop at $140 saves you from big losses.

Keep Bets Small

Don’t bet more than 5% of your money on one stock. If Boeing tanks, your portfolio stays safe.

Hedge with Gold

When stocks dip, gold often rises. Gold fell 3% to $3,240 on June 9 as stocks rallied. Buy a gold ETF like GLD to balance risks.

The Big Picture: Strong Profits, Shaky Mood

This rally isn’t just about trade talks. Company profits are solid. The S&P 500’s earnings grew 12.5% this year, led by tech (20%), communication services (33%), and retail (8%). Future earnings look strong too, hitting a new high.

But the mood is shaky. The VIX, a fear gauge, sat at 22 on June 6, higher than its usual 17.6. Shoppers are nervous, and companies like Brown-Forman and PVH warned tariffs could hurt, with stocks down 18% each. The 90-day truce could break if talks fail, so stay alert.

Top Stocks to Buy Now

Here are five stocks to grab while trade talks are hot :

Boeing (BA): Up 10% this week, Boeing wins as China allows plane deliveries. Target: $180 by July 2025.
Nike (NKE): Gained 8% as tariff fears eased. Its strong brand shines. Target: $120 by Q3 2025.
Dow Inc. (DOW): Up 7% with cheaper ethane imports. A materials winner. Target: $60 by Q4 2025.
Caterpillar (CAT): Rose 6% as global demand grows. Target: $350 by Q3 2025.
SPDR S&P 500 ETF (SPY): Safe way to ride the rally. Target: $610 by year-end 2025.

How to Stay Ahead

This rally is exciting, but trade wars are tricky. Here’s how to keep winning:

Watch the News: Trade talks can change fast. Check X for real-time updates on tariff news.
Check Google Trends Weekly: Spikes in “trade war” mean it’s time to hunt for deals.
Use MACD Daily: Look for buy signals on stocks like Nike or Caterpillar.
Stay Flexible: If talks fail, sell fast or hedge with gold.

Risks to Watch

Trade talks aren’t a sure thing. Trump’s unpredictable moves could spark new tariffs. If China walks away, stocks like Boeing could crash again. Consumer mood is weak, and some companies are already hurting. Keep your bets small and use stop-losses to avoid big losses.

Why This Matters Now

The trade war has been a market rollercoaster since April. The S&P 500’s drop showed how fast fear can spread. But June’s talks flipped the script, giving investors a chance to profit. Stocks like Nike and Dow are back in play, and the TACO trick lets you buy low and sell high. The market’s 6,000 milestone is a big win, but it’s not over yet.

Digging Deeper: Why Trade Talks Move Markets

Trade wars hit companies where it hurts: their wallets. High tariffs raise costs for imported goods, squeezing profits. Retailers like Nike pay more for shoes made in China. Car companies like Ford face higher part prices. When tariffs drop, costs fall, and stocks rise. That’s why the June 5 call was huge—it signaled cheaper goods and happier shoppers.

Global markets feel it too. China’s CSI 300 jumped as their exporters saw relief. Japan’s Nikkei rose because its companies sell to both the U.S. and China. Even small tariff cuts can boost confidence, sending stocks higher worldwide.

More Stocks to Consider

Beyond our top five, here are other names to watch:

Advanced Micro Devices (AMD): Tech stocks rose with trade hope and AI demand. Up 4% this week.
Home Depot (HD): Gained 5% as cheaper imports help retailers. Target: $400 by Q4 2025.
Deere & Company (DE): Up 3% as farm equipment demand grows with trade ease. Target: $450 by 2026.

Fine-Tuning Your Strategy

To make the most of this rally, think like a trader. Use these extra tips:

Check Earnings Reports: Strong profits, like Hasbro’s, signal good buys. Weak ones, like PVH’s, say sell.
Watch Global Markets: If China’s CSI 300 rises, U.S. stocks often follow.
Use Free Tools: Finviz.com screens oversold stocks. TradeStation offers free MACD charts.

Long-Term Outlook

The trade war isn’t over, but June’s talks are a step forward. If tariffs stay low, the S&P 500 could hit 6,200 by year-end, per analyst estimates. But if talks collapse, we could see another April-style crash. Stay nimble, keep your portfolio mixed, and don’t bet the farm on one stock.

Wrapping Up

June 2025’s trade talks sparked a market rally, lifting the S&P 500 to 6,000 and boosting stocks like Boeing and Nike. The TACO trick, Google Trends, and MACD can help you profit from tariff swings. But with the VIX high and talks shaky, protect your money with stop-losses and small bets. Ready to ride this wave? Watch the news, check your tools, and grab the opportunities while they last.