Zacks Investment Ideas feature highlights: Alibaba, JD.com, SPDR S&P Biotech ETF, Merck and Microsoft

For Immediate ReleaseChicago, IL – May 13, 2025 – Today, Zacks Investment Ideas feature highlights Alibaba BABA, JD.com JD, SPDR S&P Biotech ETF XBI, Merck MRK and Microsoft MSFT.Surprise Breakthrough: U.S./China Talks Spark Market RallyAfter months of escalating rhetoric, mounting tit-for-tat tariffs, and diplomatic gridlock, representatives from the world’s two largest economies finally sat down to talk trade. Approaching the weekend, expectations for common ground between the two rival nations were underwhelming – to say the least. China and the US had each imposed triple-digit tariffs on each other, so high that most investors on Wall Street essentially thought of them as a trade embargo.Meanwhile, representatives from the United States, like Treasury Secretary Scott Bessent, said that the negotiation between the United States and China could take three years and that “everything is on the table,” including the potential to de-list US-traded Chinese ADRs such as e-commerce giants Alibaba and JD.com.However, on Monday, stocks exploded to the upside, with the Nasdaq gaining more than 4% and the S&P 500 gaining ~3%, recouping all the losses (and then some) since President Trump’s April 2nd “Liberation Day.” Why are investors so happy? Both US and Chinese officials communicated the idea that more progress was made than initially anticipated and that the sides will finalize a pact as soon as possible.Most importantly, each side is slashing tariffs on each other for the next 90 days. The US will cut tariffs on Chinese goods to 30% from 145%, and the Chinese will lower tariffs to 10% from 125%. The cooling of trade relations will provide Wall Street with something it hasn’t had in the past month: certainty. Finally, the US and China released an extremely rare joint statement.Drug Prices Executive OrderPresident Donald Trump’s busy weekend did not stop with trade negotiations. Trump shared on his social media platform “Truth Social” that the United States will be instituting a “Most Favored Nation’s Policy” via executive order whereby the United States will pay the same price as the nation that pays the lowest price worldwide. The SPDR S&P Biotech ETF and big pharma giants like Merck were lower in early trading Monday.OpenAI Aims for IPOChat-GPT-parent OpenAI made plans over the weekend to renegotiate its partnership with Microsoft to shift to a public benefit corporation to eventually IPO. OpenAI, which has been under the “non-proifit” umbrella since its founding, has been moving toward a for-profit structure for months, and this news formalizes it. Beyond OpenAI private shareholders, MSFT investors stand to benefit the most from an OpenAI IPO as Microsoft owns a 49% stake in the company.Geopolitics: Russia/Ukraine, India/Pakistan, Hostage ReleaseThe geopolitical backdrop also provided welcome news for Wall Street. Over the weekend, news broke that Ukranian President Zelensky and Russia’s Putin will meet to negotiate an end to the current conflict. Saturday. India and Pakistan agreed to a ceasefire amid a multi-day skirmish. Meanwhile, the final living Israeli hostage was released by Hamas. Finally, President Trump will make his first international trip of his second presidency when he visits the Middle East on Tuesday.Bottom LineAn unexpected thaw in US-China trade relations is sending US equity markets soaring this morning.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report JD.com, Inc. (JD): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report SPDR S&P Biotech ETF (XBI): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks