What Happened?

A number of stocks jumped in the afternoon session after President Trump cooled fears of a transatlantic trade war by calling off scheduled tariffs on European allies. 

The rally followed a productive meeting in Davos with NATO Secretary General Mark Rutte, where a "framework of a future deal" regarding Greenland and the Arctic region was established. By explicitly ruling out the use of military force and suspending the 10% tariffs previously set for February 1st, the administration provided the "sigh of relief" the market desperately needed after Tuesday's sharp sell-off. Technology and semiconductor leaders like Nvidia and AMD spearheaded the recovery as investors quickly pivoted back into growth stocks. 

The "Sell America" trade from the prior session reversed sharply, with the Nasdaq Composite jumping 1.5% and the S&P 500 erasing its 2026 losses. This rebound was further supported by a stabilization in the bond market; as tariff-related inflation fears subsided, the 10-year Treasury yield retreated from its recent highs, creating a more favorable backdrop for equity valuations across the board.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Online Retail company Carvana (NYSE: CVNA) jumped 3%. Is now the time to buy Carvana? Access our full analysis report here, it’s free.
• Online Retail company Revolve (NYSE: RVLV) jumped 5%. Is now the time to buy Revolve? Access our full analysis report here, it’s free.
• Consumer Subscription company Bumble (NASDAQ: BMBL) jumped 3%. Is now the time to buy Bumble? Access our full analysis report here, it’s free.
• Online Marketplace company Shutterstock (NYSE: SSTK) jumped 4.3%. Is now the time to buy Shutterstock? Access our full analysis report here, it’s free.
• Financial Technology company LendingTree (NASDAQ: TREE) jumped 3%. Is now the time to buy LendingTree? Access our full analysis report here, it’s free.

Zooming In On Revolve (RVLV)

Revolve’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock dropped 5.2% on the news that the U.S. announced potential tariffs on several European countries. 

The sell-off was a reaction to news that the White House planned to impose a 10% tariff on imports from eight European nations, including France, Germany, and the United Kingdom, starting February 1. Reports indicated the tariffs were intended to pressure Denmark over the potential sale of Greenland to the U.S. and could rise to 25% if a deal was not reached. The announcement caused a significant downturn in U.S. stocks, with the S&P 500 and Dow Jones falling more than 1.4% as investors returned from a holiday weekend and reacted to the heightened trade uncertainty. The downturn was further exacerbated by a spike in Treasury yields. Higher rates particularly hurt growth stocks such as tech names since investors must discount financials further out in the future back to the present.

Revolve is up 2.2% since the beginning of the year, and at $30.22 per share, it is trading close to its 52-week high of $31.78 from February 2025. Investors who bought $1,000 worth of Revolve’s shares 5 years ago would now be looking at an investment worth $860.97.

While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report, it’s free.