Wedbush analysts believe the positive tone the Trump administration is conveying about the upcoming US/China trade discussions will be bullish for the stock market in general and for tech stocks in particular.
In a note to clients, the analysts stated that the continuing uncertainty weighing on the tech sector could be removed if the trade talks go well.
“With tariffs and trade threats back and forth the last few weeks escalating on the China rare earth threats it appears a much broader trade framework/deal could be on the table this week between US and China, which would be a huge groundbreaking moment for the tech sector and markets," the analysts wrote.
They added that a more comprehensive trade deal would take the "darker bear scenarios" off the table and be a “gamechanger” for the AI Revolution thesis.