Amazon Shares Jump 7% on Nasdaq: Here's What's Fueling the Rally

Amazon shares witnessed a sharp rise of nearly 7% on Tuesday as escalating concerns over a trade war between the US and China eased off a bit. The US President hinted at lowering the tariff rate on the Dragon, which currently stands at 245%.

"145% is very high, and it won't be that high......it won't be anywhere near that high. It'll come down substantially. But it won't be zero," Trump said.

On Tuesday, Amazon shares were trading around $184 price level, up by more than 6.35% from the previous closing, on Nasdaq. In the last 5 trading sessions, the e-commerce stock has managed to remain in the green territory despite heightened volatility in the broader market.

On Tuesday, Amazon shares were trading around $184 price level, up by more than 6.35% from the previous closing, on Nasdaq. In the last 5 trading sessions, the e-commerce stock has managed to remain in the green territory despite heightened volatility in the broader market.

"We are going to be very nice, they are going to be very nice and we will see what happens. But ultimately, they have to make a deal because otherwise they are not going to be able to deal in the United States," POTUS added.

Previously, the escalating tension over tariff rates between the US and China was major bad news for not just Amazon but other e-commerce giants like Walmart as well. This was largely owing to China's strong presence in the supply chain. A significant amount of products sold by these companies are sourced from China. And the imposition of high tariffs on the nation can be detrimental to Amazon's bottom line.

Amazon Share Price

On a year-to-date basis, the performance of Amazon shares has failed to impress Wall Street. Amazon stock was trading around $220 price level earlier this year and has now dropped to $182 (nearly), signalling a drop of over 16%.

Recently, Josh Beck, an analyst at Raymond James, lowered his price target on the e-commerce stock to $195 from $275, citing high risks related to capital investments and the recent tariff play. “We take a fresh look at the Amazon investment cycle (supply chain, logistics, AI, other bets) and based on an uneven macro/tariff and steepening investment intensity, walk away with a bias that the Street is underestimating EBIT pressures in 2025-26,” he said in a market note.

As for now, Amazon's Q1 results will be a major watch for investors