The Trade Truce Rally: Where to Deploy Cash Now in Tech, Retail, and Crypto

The U.S.-China trade truce and soft inflation data have ignited a green light for investors to rotate into sectors primed to thrive in this new macro environment. With tariffs rolling back and the Fed on hold, now is the time to double down on tech, consumer discretionary, and crypto/finance—and avoid the pitfalls in healthcare. Let’s dive in.

1. Tech: NVIDIA’s AI Chip Boom Gets a Tariff Tailwind

The 90-day tariff rollback slashes U.S. tariffs on Chinese imports from 145% to 30%, and China mirrors the move. For NVIDIA (NVDA), this is a game-changer. The company’s AI chips—critical for data centers and autonomous vehicles—are built with components that once faced punitive duties. Lower costs mean fatter margins, and with AI demand soaring, NVDA’s stock is primed to hit new highs.

The Fed’s delayed rate cuts (they’re holding at 4.25%-4.5%, with a potential September cut) also favor growth stocks. Lower rates mean higher valuations for companies betting big on innovation.

Action: Buy NVDA now. AI is the next frontier, and this stock is the rocket ship.

2. Consumer Discretionary: Retailers Restock, Prices Cool

The CPI report for April showed inflation at a 2.3% annual rate, the lowest since 2021. Energy prices are crashing (gasoline down 12% year-over-year), and retailers like Walmart (WMT) and Target (TGT) are finally able to rebuild inventories without fear of tariff-fueled cost spikes.

Lower tariffs mean cheaper imports, and with consumers sitting on $2.5T in pent-up savings, the stage is set for a retail rebound.

Action: Rotate into consumer discretionary ETFs like XLY—these stocks are primed for a summer surge.

3. Crypto/Finance: Coinbase’s S&P 500 Inclusion Signals Institutional Buy

The biggest crypto win yet: Coinbase (COIN) is joining the S&P 500 on May 19, replacing Discover Financial Services. This milestone isn’t just symbolic—it’s a $2.5B catalyst as index funds rush to rebalance.

The stock shot up 24% on the news, but this is just the start. With crypto regulation now friendlier under the Trump administration and Bitcoin nearing $100K, Coinbase’s $2.9B acquisition of Deribit positions it to dominate derivatives trading.

Action: Buy COIN now—this is the first leg of crypto’s institutional acceptance.

4. Healthcare: UnitedHealth’s Stumble Shows the Sector’s Vulnerability

While the rest of the market rallies, healthcare is a disaster zone. Take UnitedHealth (UNH): its CEO just resigned, guidance is suspended, and its stock cratered 18% in a single day. Why? Tariffs are squeezing margins, and the sector’s regulatory uncertainty hasn’t abated.

The Fed’s focus on inflation also means healthcare’s high valuations—built on steady demand—are now under pressure. Stay far from this sinking ship.

5. The Fed’s Playbook: Delayed Cuts = Growth Stock Fuel

The Fed is holding rates to “wait and see” how trade policies shake out. But traders are already pricing in a September rate cut, and with inflation cooling, that’s a done deal.

Lower rates mean cheaper borrowing costs for tech startups and a boost to growth stocks. Avoid bonds—10-year yields at 4.5% are screaming “stay in equities.”

Bottom Line: Act Now—This Rally Won’t Last

The trade truce and soft inflation are a once-in-a-decade opportunity to load up on tech, retail, and crypto. Ignore the naysayers—it’s time to bet on sectors that’ll dominate the next decade.

• Buy NVDA, WMT, TGT, and COIN.
• Avoid UNH and other healthcare laggards.
• Rebalance before the S&P 500 Coinbase shift on May 19!

The Fed’s on hold, inflation’s tame, and the trade war’s paused. Don’t miss this train—now is the time to strike!