Big Tech leads global stocks rally after Trump reciprocal tariff pause

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The technology giants hit hardest in this year’s selloff were leading the rest of the stock market higher on Monday, after temporary reciprocal tariff exemptions were made for phones, computers and popular consumer electronics. 

The S&P 500 Index climbed 1.5 per cent as of 9.33 am in New York, while the technology-heavy Nasdaq 100 Index jumped 1.9 per cent. Shares of Apple Inc soared as much as 7.5 per cent, with Magnificent Seven peers Nvidia Corp and Amazon Inc also rising. 

US President Donald Trump downplayed the weekend exemption, saying he will still apply tariffs to a range of high-tech gadgets, as part of his overall push to remake US trade. 

The US Customs and Border Protection announced a tariff exclusion for some electronics on Friday, only for US Commerce Secretary Howard Lutnick and the president on Sunday to follow up by saying the reprieve was temporary and a procedural step in the plan to apply a different, specific levy to the sector. 

The trading desk of JPMorgan Chase & Co said early Monday that technology stocks are poised to lead a relief rally that this time is likely to last more than one session as volatility dissipates. Whether it turns into another bull run depends on whether there is a “material reset” in US-China trade negotiations, according to head of global market intelligence Andrew Tyler.  

“We are in a much better spot than Friday,” Daniel Ives at Wedbush Securities wrote in a note. “But still, there is mass uncertainty, chaos, and confusion about the next steps ahead, with all focus on China tariff negotiations being front and center, and any progress on this game of high stakes poker between Beijing and DC being crucial to the markets and the economy this week.” 

 

US stocks are coming out of an intensely volatile week, when the benchmark indexes swung wildly amid news on tariffs. The swing was most extreme after Trump on Wednesday announced a 90-day pause on the levies for most countries except China. Stocks soared on that, with the S&P 500 notching its best one-day gain in 17 years and capping its best week since 2023. 

The Stoxx Europe 50 index rose 2.9 per cent at 8.45 pm IST, with energy stocks, banks and miners among the biggest gainers. 

At the time of closing, Hong Kong’s Hang Seng index had climbed 2.4 per cent, while China’s Shanghai SE Composite had risen by 0.8 per cent.