10 Stocks Jump, Defy Market Uncertainties on Thursday

3. Avis Budget Group Inc. (NASDAQ:CAR)

Avis Budget surged by 20.49 percent on Thursday to end at $74.16 apiece on investor confidence that its core car rental business would benefit from the imposition of a 25-percent tariff on new cars manufactured outside the US.

Earlier this week, President Donald Trump announced that the US would begin to impose a 25-percent levy on all vehicles made outside the US beginning April 2.

In a report by Reuters, Stock Trader Network chief strategist Dennis Dick said that rental companies will actually benefit from the tariffs “because if car prices are going to go up, maybe some people who are like, ‘You know what? I don’t travel that much. I’ll just rent a car.”

“You get a little bit of a short squeeze here too and that’s really, really kickstarting this rally,” he added.

JP Morgan also posted confidence that some automotive parts and services firms could benefit from the new tariff announcements as consumers are likely to hold on to existing cars longer than usual, with repair frequency and size both benefiting the sector.