$4 Trillion Nvidia Leading Renewed Market Uptrend as Tariff Bears Give Up Hope
Plus, 10 biotech stocks on my radar as the sector may finally be ready to shine.
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After two days of mixed action, the market uptrend is back on track with the Nasdaq 100 QQQ pushing to a new all-time high and breadth running more than 2-to-1 positive.
Bears were hoping that the tariff issue would be the trigger for corrective action, but the market held up well, and now bears have to reposition again or risk being run over by the upside momentum.
The Magnificent Seven MAGS is leading the charge with Nvidia NVDA jumping more than 2.5% making it the first stock with a market capitalization of more than $4 trillion. That is interesting information, but it isn’t significant from an investing perspective.
Nvidia is the king of the market and in a position to continue in that role for a while. A lot of investors would like to add exposure due to FOMO, but they are afraid of chasing, and also worried that they won’t see a dip to buy.
One sector that is jumping Wednesday is biotechnology. The surge is due in part to news that Merck MRK is buying Verona Pharma VRNA for $10 billion. That is the biggest biotechnology deal of 2025 and it's creating optimism about other potential deals in the group.
The iShares Biotechnology ETF IBB is trading at the same level it hit 10 years ago in July 2015. There was one good run in the sector during the post-Covid boom, but the group dropped hard in late 2021 and has been struggling since then, while the S&P 500 has outperformed it by a substantial margin. The biuotech group has been a laggard for so long that many investors have given up on it, but the Merck-Verona deal may be the catalyst that is needed to create greater interest in the group.
The biotechnology sector has always been one of my favorite groups because the best names can make tremendous moves. Unfortunately, there is also very high risk of blowups and disappointments, but the winners in the group will outperform almost everything else.
A few of the biotechnology names on my radar include Xeris Biopharma XERS, ADMA Biologics ADMA, BridgeBio Pharma BBIO, Delcath Systems DCTH, Emergent BioSolutions EBS, Humacyte HUMA, Mereo BioPharm MREO, Ocular Therapeutix OCUL, uniQure QURE, and Nektar Therapeutics NKTR. I am looking for more names in the group and will be aggressively adding if the sector finally starts to outperform.
At the time of publication, Rev Shark was long NVDA, ADMA, BBIO, DCTH, EBS, HUMA, MREO, OCUL, QURE, NKTR and XERS.
