Funko's stock has seen a remarkable surge following the announcement of a 90-day trade truce between the U.S. and China, which includes significant reductions in tariffs. The U.S. has agreed to cut additional tariffs on Chinese imports from 145% down to 30%, while China will lower tariffs on U.S. goods from 125% to just 10%. These temporary measures are intended to last for 90 days, according to Reuters.

The trade truce has sparked a significant rally in U.S. markets. The S&P 500 has climbed by 2.6%, the Dow Jones jumped 957 points, marking a 2.3% increase, and the Nasdaq rose by an impressive 3.6%, as reported by AP News. This positive market response highlights investor optimism as the trade tensions show signs of easing.

Toy manufacturers like Funko, who previously struggled with high tariffs that led to price hikes and complicated supply chains, are expected to benefit from the reduced tariffs. This truce alleviates some of the pressures faced by the industry, offering a sense of relief and potential stability for companies heavily reliant on international trade.