08:56 AM EDT, 05/12/2025 (MT Newswires) -- An agreement between the US and China reached over the weekend to temporarily reduce reciprocal tariffs represents a "best case scenario" and is expected to lead to new highs for the market and boost technology stocks in particular, Wedbush said in a Monday note.

With the US cutting tariffs on Chinese goods to 30% from 145% for 90 days and China reducing the tariffs on US goods to 10% for 90 days, Wedbush analysts said they expect the tariff numbers to "move down markedly" over the coming months as talks continue.

The tariff reductions will likely take recession "off the table" for now, and will be "very bullish news" for the tech trade as supply chain concerns will be significantly reduced, the analysts said.