Why Reddit, US Steel, and biotech stocks exploded as Trump’s tariffs shocked global markets

Despite heightened market volatility driven by geopolitical shifts and economic concerns, select U.S. stocks posted sharp gains on April 7, 2025. While major indices were roiled by the impact of President Donald Trump’s sweeping new tariff policies, which rattled investor confidence and reignited trade war fears, several companies across biotech, steel, technology, and consumer sectors surged in value. These top-performing stocks demonstrated resilience, either by directly benefiting from protectionist tailwinds or through renewed optimism surrounding long-term growth stories. Among the key gainers were United States Steel Corporation, Rhythm Pharmaceuticals, Reddit, Rigetti Computing, and Super Micro Computer. These gains reflect a broader trend of strategic sector rotation in response to policy and macroeconomic shifts.

The S&P 500 and the Dow Jones Industrial Average ended the session lower, while the Nasdaq Composite barely managed a positive close. This divergence in market performance highlighted investor repositioning, with capital flowing into domestic manufacturing, defensive retail, speculative tech, and clinical-stage biopharma. As broader sentiment remained cautious amid warnings of stagflation and recession from financial leaders, the list of outperformers on April 7 told a story of selective bullishness amid economic crosscurrents.

Why did United States Steel Corporation lead the rally?

Shares of United States Steel Corporation surged by 16.22% to close at $44.50, making it one of the session’s top gainers. This move was closely linked to President Trump’s renewed trade stance, which included a 10% blanket tariff on all imports and heightened tariffs of over 50% on Chinese goods. Analysts interpreted the policy shift as structurally favorable to U.S.-based steel producers. With global competition restrained by new import levies, domestic players like United States Steel are positioned to capitalize on reshoring trends, increased defense procurement, and infrastructure demand.

Historically, steel stocks have been among the early beneficiaries of tariff regimes, particularly during the 2018-2020 period of trade frictions under Trump’s first term. Today’s rally echoed that precedent, with traders anticipating margin expansion and pricing power for U.S. mills. Institutions also appeared to be reallocating capital into hard-asset industries perceived as shielded from macroeconomic uncertainty.

What drove the biotech sector’s standout performance?

Biotech names were prominently represented among the top gainers, driven by trial updates, sector rotation, and retail trading interest. Rhythm Pharmaceuticals, Inc. gained 17.06% to $54.96 after investor enthusiasm intensified around its pipeline targeting rare genetic obesity disorders. With regulatory approvals expanding globally and the obesity treatment market growing rapidly, the company’s value proposition became more compelling amid broader volatility.

Tonix Pharmaceuticals Holding Corp. climbed 13.81% to $17.80 following progress in its PTSD drug program. Despite its micro-cap status and historical volatility, the stock attracted speculative attention, particularly from healthcare-focused retail traders anticipating milestone-based catalysts. Both companies illustrate how investors, seeking uncorrelated growth, are leaning into biopharma innovation with potentially scalable addressable markets.

How are AI and quantum computing stocks navigating policy-driven uncertainty?

Quantum computing firm Rigetti Computing, Inc. saw an 11.07% jump to $8.33, and IonQ, Inc. rose 10.01% to $22.75 as investor appetite returned for next-generation computing plays. These stocks often experience sharp movements in response to macro narratives involving national security, federal R&D investments, and strategic tech independence. With growing bipartisan consensus in Washington around funding quantum technologies to maintain U.S. technological leadership, these companies are viewed as high-risk, high-reward opportunities.

Super Micro Computer, Inc. advanced 10.66% to $33.00 amid optimism surrounding demand for AI data center infrastructure. As generative AI continues to drive demand for power-efficient computing hardware, Super Micro’s positioning within this supply chain attracted investor attention, especially given its exposure to GPU-accelerated servers and cloud integration. The move also reflects a divergence within the broader technology sector, as select enablers of AI infrastructure buck the recent downgrades seen among ad-reliant platforms like Meta and Alphabet.

What explains the retail and energy-linked stock surges?

Several consumer and energy-tied companies also saw strong gains. RH, formerly Restoration Hardware, climbed 12.92% to $164.48 despite pressure on the luxury home sector. The move was attributed to short-covering and renewed confidence in the company’s margin control strategy. Dollar Tree, Inc. added 7.83% to reach $72.84, benefiting from its positioning as a defensive play during periods of inflation and reduced discretionary spending. Similarly, Five Below, Inc. rose 7.24% to $60.88 as investors rotated into low-cost retail.

Energy-linked names also performed strongly. Texas Pacific Land Corporation, a land and royalty-focused oil and gas play, surged 6.94% to $1,153.91. Ivanhoe Mines Ltd. advanced 9.74% to $7.89, reflecting optimism in the broader metals sector amid resource nationalism concerns and tightening global supply chains.

Oklo Inc., a next-generation nuclear energy firm, rose 10.76% to $21.93, indicating a renewed interest in alternative energy infrastructure. The rise came amid increased government focus on clean energy and domestic power resilience, particularly in the wake of grid pressure and geopolitical instability in energy trade.

Why did Reddit and Rocket Lab see continued momentum?

Reddit, Inc. gained 7.01% to close at $93.00 as post-IPO interest remained elevated. Retail investors have been particularly active in Reddit, viewing it both as a platform and a symbol of user-powered investing. The company’s monetization strategies and ad revenue models are still in early stages, but its highly engaged community base continues to attract speculative capital, particularly during high-volatility sessions.

Rocket Lab USA, Inc. rose 7.03% to $17.52, and Archer Aviation Inc. jumped 7.42% to $6.66. These companies, though speculative, represent frontier technologies in aerospace and mobility. Their inclusion among the top gainers highlights investors’ willingness to embrace longer-horizon bets tied to disruptive innovation, particularly in sectors aligned with government grants or defense partnerships.

How did technology and semiconductor-related names perform?

Among the day’s tech gainers were Credo Technology Group Holding Ltd, up 7.84% to $35.91, and Camtek Ltd., which rose 9.12% to $55.17. These companies, both operating within the semiconductor space, are positioned to benefit from increasing demand for connectivity and chip inspection systems amid AI and edge computing growth.

Vertiv Holdings Co climbed 7.42% to $63.82 as investors anticipated stronger demand for power and thermal management solutions in data centers. Tower Semiconductor Ltd. added 7.42% to $31.85, with expectations that reshoring and global diversification of chip supply chains would play in its favor. MicroAlgo Inc. also joined the rally with an 11.37% jump to $20.67, riding the momentum around AI algorithm development.

What broader themes united the top stock gainers on April 7?

Across the board, the top gainers of April 7 shared common traits: exposure to national industrial strategy, insulation from global supply chain fragility, and ties to emerging technology or essential services. While the market remained cautious due to rising interest rates, stagflation fears, and the growing possibility of recession, investors sought out names with asymmetric upside.

From financials like EFG International AG, which rose 84.05% to $15.00 on extremely low volume, to consumer tech players like Newegg Commerce, Inc., which rose 8.47% to $5.26, the day’s rally had both institutional and retail fingerprints. Upstart Holdings, Inc., which gained 8.56% to $37.78, also benefited from short-covering and renewed interest in AI-driven lending platforms.

Even smaller-cap gainers like TechnoPro Holdings, Inc. — up 11.31% to $20.03 — were swept up in the tide of interest surrounding resilient business models and technology services that could benefit from global digital transformation despite ongoing economic headwinds.

The sharp moves across such a diverse group of companies point to a market in transition, as traders recalibrate portfolios around policy-induced supply shocks, inflation-resistant themes, and secular growth stories in AI, energy, and healthcare.