Wedbush: Adjusting tariffs between China and the US is the "best-case scenario" for US tech stocks.

Investment bank Wedbush stated on Monday that a significant reduction in US-China bilateral tariffs over the next 90 days is the "best-case scenario" for US tech stocks. The bank's analysts said, "This is clearly just the beginning of a broader, more comprehensive negotiation. We expect tariff numbers to decrease significantly in the coming months as negotiations progress." According to reports, from May 10th to May 11th, China and the US held high-level economic and trade talks in Geneva, Switzerland. The talks resulted in a series of important agreements and substantial progress. On May 12th, China and the US issued a joint statement on the Geneva economic and trade talks. A spokesperson for the Chinese Ministry of Commerce said in a statement regarding the joint statement of the China-US Geneva economic and trade talks that the high-level economic and trade talks between China and the US have made substantial progress, significantly reducing bilateral tariff levels. The US has cancelled a total of 91% of the additional tariffs imposed, and China has correspondingly cancelled 91% of the retaliatory tariffs. The US has suspended the implementation of 24% of the "equivalent tariffs," and China has also suspended the implementation of 24% of retaliatory tariffs. Wedbush called this a "dream scenario" for the market and bullish investors, noting that the US and China now seem to be "accelerating towards a broader agreement," which could lead to new highs for the US stock market and tech stocks this year. Although there are still many issues to be resolved, especially those related to chip export restrictions that have affected companies like NVIDIA Corporation (NVDA.US), Wedbush analysts believe that the news of easing tensions in US-China trade is "extremely favorable" for tech stock trading. The analysts said, "We believe the news this morning is a huge win for the bulls, and is the best-case scenario coming out of this weekend."