Wall Street celebrated the start of tariff negotiations on Wednesday afternoon, sending the S&P 500 and the Nasdaq skyrocketing.

The stock market roared back to life after Trump “authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%.” At the same time, the Trump administration doubled down on its tariff battle with China.

Wednesday’s jump highlights why long-term investors should remain exposed to stocks during downturns. The rapid one-day move reinforces why it’s often beneficial to start buying into stock market weakness when technical levels flash buying signals.

Still Time to Buy the Dip from a Technical Standpoint

The Nasdaq fell below its 2021 highs late last week, reaching its most oversold RSI levels since the COVID selloff lows and the 2022 bear market. The rapid selloff also pushed the Nasdaq near its 200-week moving average.

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The 200-week moving average is one of Charlie Munger’s favorite technical indicators. Warren Buffett’s longtime right-hand man, who passed away in 2023, once said: “If all you ever did was buy high-quality stocks on the 200-week moving average, you would historically beat the S&P 500 by a large margin over time.”

CNN’s Fear and Greed Index, a contrarian stock market buy and sell indicator, tanked to Extreme Fear (4) at the start of the week—its lowest level in the last year. The indicator has since risen to 17, remaining in Extreme Fear territory even after Wednesday’s rally.

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The bulls scooped up stocks at the Nasdaq’s 52-week lows midweek. The huge rally also took the Nasdaq back above its 2021 highs, preventing it from sliding below its 200-week moving average.

There could easily be more selling on Thursday and in the days and weeks ahead as Wall Street reacts to the ebbs and flows of the tariff wars.

What investors must avoid is thinking they’ve already “missed their chance” to buy stocks at significant discounts.

The two technology standouts we dive into today—Taiwan Semiconductor Manufacturing Co. and Vertiv—are still trading 30% and 50% below their respective highs.

Buy This Tech Stock and Chip Powerhouse and Hold Forever

It is not hyperbolic to say the modern world would be lost without Taiwan Semiconductor Manufacturing Co. TSM. Taiwan Semi physically builds many of the most cutting-edge chips powering AI and other technological innovations, reportedly boasting a 60% share of the global foundry market and 90% of advanced chip manufacturing.

Apple, Nvidia, and most of the largest technology companies on the planet rely on Taiwan Semi to manufacture their most advanced chips. TSMC is projected to grow its sales by an average of 23% in 2025 and 2026 and expand its earnings by 29% and 21%, respectively.

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Taiwan Semi shares have more than tripled the Zacks Tech sector over the past 20 years, and they found support near their previous 2021 and 2022 peaks on Wednesday. Despite jumping 12% yesterday, TSM trades 30% below its highs.

Valuation-wise, TSM trades at a 56% discount to its highs, 15% below its 10-year median, and 28% below the Tech sector at 14.6X forward 12-month earnings.

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The chipmaker is rapidly addressing its very real geopolitical risks by expanding outside Taiwan into Japan and the U.S. Finally, Taiwan Semi’s strong balance sheet supports its growth plans and dividends.

Buy This AI Data Center Stock Still Down 50% from Its Highs?

Vertiv Holdings Co. VRT provides critical digital infrastructure and continuity solutions. In short, the behind-the-scenes tech firm helps the power-hungry world of data centers run as smoothly as possible around the clock.

VRT, which has partnered with Nvidia to help solve AI data center cooling issues, is poised to grow regardless of which AI hyperscalers dominate the market.

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Vertiv reaffirmed its five-year financial framework in mid-February, following initial DeepSeek AI spending fears. The company is projected to grow its revenue by 15% in both 2025 and 2026, helping to lift its earnings by 26% this year and 24% next—on top of 60% EPS growth in FY24 and 230% expansion in 2023.

Vertiv was a prime example of an artificial intelligence stock that became far too overheated by early 2025, after rallying from $13 per share in April 2023 to $155 in January. The stock has since come back down to earth, allowing investors to buy into its long-term upside at more reasonable levels. VRT trades around 53% below its highs despite its 15% jump on Wednesday.

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VRT appears to have found support near its August lows and its pre-2024 breakout highs. Vertiv is trading 63% below its highs at 16.5X forward 12-month earnings and 18% below the Tech sector, despite soaring 690% in the past five years compared to Tech’s 95%.

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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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