Following the U.S. decision to impose an additional 10% tariff on China, Beijing retaliated with a 15% tariff on American coal and other goods.
However, Wall Street rallied on reports that both nations are reluctant to escalate tensions further. This market optimism lifted NVIDIA shares by nearly 2%, offering a welcome reprieve for the tech giant.
On Tuesday, NVIDIA stock closed at $118.65, up 1.71% in New York trading.
As NVIDIA derives a significant portion of its revenue from China, the company has been under pressure in recent sessions due to mounting concerns over the U.S.-China trade dispute.
Tuesday’s uptick appeared driven by investor hopes that the trade war would not escalate further.
Despite the day’s gains, NVIDIA shares have fallen 8% over the past five trading sessions and a steep 18% over the past month.