Amid market carnage, these stocks soared—why GameStop, Rocket, and housing plays defied the tariff panic

On April 4, 2025, U.S. stock markets were rocked by a sudden, sweeping escalation in trade tensions between the United States and China, triggering one of the steepest single-day declines since the pandemic. The Dow Jones Industrial Average plunged 2,231 points, or 5.5%, while the S&P 500 and Nasdaq Composite dropped over 6% and 5.8%, respectively. The sharp downturn erased approximately $2.5 trillion in market capitalization and reflected investor fears of a potential global economic slowdown. Yet, amid this sea of red, a group of select stocks—including GameStop Corp. and Rocket Companies, Inc.—stood out for their resilience, logging substantial gains and drawing the attention of traders searching for pockets of strength in an otherwise fragile environment.

What sparked the market selloff and which sectors were hit hardest?

The downturn was triggered by Beijing’s retaliatory move to impose a sweeping 34% tariff on all American imports, a direct response to President Donald Trump’s recently announced global tariff regime aimed at rebalancing trade flows and promoting domestic manufacturing. The policy shift raised immediate concerns over inflationary pressure, corporate margins, and the stability of global supply chains.

Federal Reserve Chairman Jerome Powell noted that the new tariffs could have long-term inflationary consequences while also dampening U.S. GDP growth. The central bank, already grappling with limited room for interest rate cuts due to lingering inflation, now faces the possibility of stagflation—a period marked by stagnant growth and rising prices. That macro backdrop sent yields plunging and equity prices tumbling, especially in sectors with direct exposure to international trade and China in particular.

Tech stocks were among the hardest hit. Apple Inc. saw its shares drop over 7% on fears of Chinese supply chain disruption and potential consumer backlash in Asia. Semiconductor and cloud infrastructure stocks also faced steep losses, as investors recalibrated earnings expectations amid rising costs and falling demand.

Energy was another weak link, with companies such as APA Corporation and Baker Hughes down more than 13%, weighed by concerns over deteriorating global oil demand and overcapacity. Industrial and manufacturing names tied to cyclical growth likewise suffered significant losses.

How did GameStop’s CEO trigger an 11% rally in a down market?

In stark contrast to the turmoil elsewhere, GameStop Corp. surged 11.33% to $23.49 on exceptionally high trading volume. The rally was driven by news that CEO Ryan Cohen had purchased 500,000 shares at an average price of $21.55, lifting his ownership stake to 8.4%. The move was disclosed in a regulatory filing and interpreted by investors as a strong vote of confidence from the company’s top executive.

GameStop, a legacy brick-and-mortar video game retailer, has struggled in recent years amid the shift to digital downloads and e-commerce. Under Cohen’s leadership, however, the company has attempted a broad transformation strategy, including expanding into digital asset integration and experimenting with blockchain-based product offerings. Most recently, GameStop announced a pilot program to begin accepting Bitcoin as payment in select stores—a high-risk, high-reward gamble in a volatile crypto environment.

The company’s ongoing metamorphosis has made it a speculative favorite among retail traders, particularly those active on social media platforms. With short interest remaining elevated, any positive catalyst—such as insider buying—can quickly ignite momentum-driven rallies.

Why did Rocket Companies gain over 11% amid recession fears?

Rocket Companies, Inc. posted an 11.19% gain to close at $15.40, with volume spiking to nearly five times its average. The mortgage giant’s outperformance was tied to investor expectations that falling Treasury yields, a direct consequence of recession fears and flight-to-safety bond buying, would eventually translate into lower mortgage rates. That scenario could stimulate demand for home refinancing and new mortgage originations, boosting Rocket’s core business lines.

Although rising interest rates had weighed on Rocket’s earnings in recent quarters, the company remains a leading digital lender in the United States. Its operational efficiency and strong brand recognition in the home loan space have helped it retain investor interest, even as cyclical headwinds mounted. In addition, the possibility of the Federal Reserve pivoting toward rate cuts sooner than expected, should the economy contract, gave further fuel to optimism around interest-rate-sensitive names like Rocket.

Which other stocks outperformed and why were homebuilders in focus?

Outside of GameStop and Rocket, several other stocks across diverse industries posted notable gains. Retailers such as The Gap, Inc. (up 7.23%), Crocs, Inc. (up 4.88%), and American Eagle Outfitters, Inc. (up 4.79%) rallied despite mounting concerns over consumer spending. Analysts speculated that investors were rotating into companies with leaner inventories, strong brand identities, and streamlined cost structures capable of weathering potential macroeconomic shocks.

One of the most surprising trends on April 4 was the strength in homebuilding and construction-related stocks. D.R. Horton, Inc. gained 4.55%, M/I Homes, Inc. rose 4.76%, and luxury homebuilder NVR, Inc. climbed 4.23%. Smaller players like Dream Finders Homes, Inc. and Tri Pointe Homes, Inc. also posted solid gains.

This group benefited from falling bond yields, which could ease mortgage costs and stabilize housing demand even in the face of a slowing economy. Installed Building Products, Inc. rose 5.78%, and TopBuild Corp. gained 6.64%, signaling confidence in sustained construction activity. Builders FirstSource, Inc. also advanced by 3.46%, reflecting continued demand for construction materials and services.

TFI International Inc., a transport and logistics firm, rallied 4.76%, supported by falling diesel prices and optimism that e-commerce logistics may prove resilient even in a contracting economy.

What does this divergence signal about investor positioning and sector sentiment?

April 4 served as a textbook example of bifurcated market behavior. While the broader indices collapsed under the weight of geopolitical and policy stress, pockets of relative strength emerged in consumer staples, home construction, and select retail names. This divergence suggests that investors are increasingly selective in their risk appetite, hunting for value and defensive positioning in an uncertain macro landscape.

Stocks like Deckers Outdoor Corporation and On Holding AG, both operating in the athletic and lifestyle footwear space, rallied 5.10% and 5.21% respectively, as demand for high-margin branded products remained stable. Similarly, Strategy Incorporated, a stock closely tied to Bitcoin performance due to its MicroStrategy roots, advanced 4.01%, benefiting from the rising price of digital assets amid fiat currency concerns.

Vaxcyte, Inc., a clinical-stage biotech focused on novel vaccine development, rose 3.40% to $31.60. Although speculative by nature, biotech often behaves defensively during periods of economic distress, particularly when broader healthcare sentiment remains firm.

Are these gains sustainable or just a temporary hedge against volatility?

While these upward moves reflect a blend of technical bounces, short-covering, and sector-specific tailwinds, the underlying environment remains fraught with risk. The escalation in U.S.-China tensions has introduced a new layer of uncertainty that markets will need to digest over the coming weeks. Should corporate earnings falter or global trade volumes decline, even relatively insulated sectors could see downward revisions.

Nevertheless, the performance of companies like GameStop, Rocket Companies, and top homebuilders offers a glimpse into how investors may reposition portfolios to navigate a policy-driven, volatile market. Stocks with insider buying, strong fundamentals, or exposure to rate-sensitive industries may continue to attract capital—even as the broader indexes remain under pressure.