XPeng Inc. (XPEV) saw its stock surge 9.99% in pre-market trading on Tuesday, January 14, 2025, as the electric vehicle maker's shares rallied along with other Chinese ADRs and ETFs.
The pre-market rally was driven by reports that members of the incoming Trump administration discussed a gradual approach to ramping up tariffs on Chinese goods, easing concerns over potential sharp inflation rises and allowing more room for the Federal Reserve to reduce interest rates.
The possibility of a gradual tariff rollout has stirred optimism among investors, given President-elect Trump's previous threats to impose levies of up to 60% on Chinese imports. Such a plan could ease inflationary pressures and pave the way for the Fed to adopt a more dovish stance on interest rates, providing a potential tailwind for markets.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.