Tech Stocks Roar Ahead in Pre-Market: Trade Deals and Bitcoin Fuel the Rally

The tech sector surged in pre-market trading on May 9, 2025, as investors bet on easing global trade tensions and a Bitcoin price explosion. Key catalysts included the U.S.-U.K. trade deal, bullish crypto momentum, and leveraged ETF activity. Let’s dissect the drivers behind this rally—and where risks still lurk.

Market Catalysts: Trade Deals and Bitcoin’s Billion-Dollar Boost

The pre-market rally was ignited by two macro tailwinds: trade optimism and crypto euphoria.

1. U.S.-U.K. Trade Deal:
   A bilateral agreement, finalized May 8, slashed U.S. tariffs on British car exports and expanded agricultural trade. This eased fears of escalating trade wars, boosting investor sentiment for tech stocks reliant on global supply chains. President Trump’s hints of “substantive” China talks—including potential tariff reductions from 145% to 80%—further fueled optimism.

2. Bitcoin’s $100K Breakout:
   Bitcoin surged to a record $103,000, driving gains for crypto-linked assets like the iShares Bitcoin Trust ETF (IBIT), which rose 10.7% pre-market. This ETF’s 107.44% rebound from its 52-week low () underscores institutional inflows into digital assets amid macro stability.

Sector Breakdown: Winners and Losers

While the tech sector broadly advanced, performance diverged sharply.

Winners:

• NVIDIA (NVDA):
  Traded at $117.43, up 70.14% from its 52-week low, as AI demand and trade deal optimism offset semiconductor sector headwinds. reveals a correlation between crypto rallies and its valuation.

• Leveraged ETFs:

• TQQQ (ProShares UltraPro QQQ) rose to $59.55, 70.14% above its lows, betting on NASDAQ-100 momentum.
• TSLL (Direxion Daily TSLA Bull 2X Shares) jumped 68% from its low, riding Tesla’s post-earnings rebound.

Losers:

• Coinbase (COIN):
  Fell 2% pre-market after reporting Q1 revenue of $2.03B, missing estimates. Its struggles highlight the sector’s reliance on macro conditions rather than pure crypto adoption.

• Fintech Laggards:
  Affirm (AFRM) dropped 4% on weak Q4 guidance, underscoring risks in “buy now, pay later” models amid slowing consumer spending.

Risks Lurking in the Shadows

While the rally is compelling, three red flags demand attention:

1. Fed Policy Uncertainty:
   The Federal Reserve’s reluctance to cut rates (citing tariff-driven inflation) could crimp growth stocks. The CBOE Volatility Index (VIX) dipped to 22.48, but risks persist if trade talks falter.

2. Sector Overhang:
   Semiconductors remain vulnerable. Microchip Technology (MCHP) saw Q4 sales drop 27% YoY, despite analyst optimism about a “bottoming-out.”

3. Crypto Volatility:
   Bitcoin’s surge could reverse if trade optimism fades. A $100K price is fragile without sustained institutional demand.

Conclusion: Bulls Are Back, but Don’t Forget the Fed

The pre-market tech rally reflects a bold bet on trade de-escalation and crypto’s comeback narrative. The NASDAQ 100 Pre-Market Indicator’s 91.45-point jump to 20,155.02 signals investor confidence in tech’s resilience.

However, risks remain. The Fed’s 4.25%-4.5% rate stance and unresolved China tariffs could undercut momentum. Investors should pair bullish bets with caution—considering hedges like inverse ETFs (e.g., SQQQ) or defensive utilities.

The verdict? Tech is roaring—but only as long as trade deals stay on track and Bitcoin holds its ground.