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Apple, Nvidia, and Amazon Lead Market Gains After Tariff Pause

Apple, Nvidia, and Amazon Lead Market Gains After Tariff Pause
 

Global technology and semiconductor stocks experienced a significant rally on Monday after the United States and China reached a pivotal agreement to pause most tariffs on each other’s goods. This breakthrough has been seen as a major step in easing trade tensions between the two largest economies in the world, sparking optimism among investors and boosting major tech firms.

 

Market Reaction: A Relief for Tech and Semiconductor Giants

The announcement brought immediate gains for companies heavily exposed to the Chinese market. In the U.S., Nvidia, despite ongoing restrictions on certain chip exports to China, saw its stock climb by 4% in premarket trading. Other chipmakers, such as AMD, Broadcom, and Qualcomm, gained around 5%, while Marvell Technology surged by an impressive 7.5%.

Notably, Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest chipmaker, saw its U.S.-listed shares jump 4% in premarket trading. Although its Taiwan-listed shares had already closed before the announcement, the positive sentiment is expected to carry over to its next trading session.

European chip firms also joined the rally. Dutch semiconductor equipment maker ASML rose 4.5%, while Infineon Technologies saw sharp gains as well.

The semiconductor sector, which had been hit hard by supply chain disruptions and escalating costs due to tariffs, appears to be breathing a collective sigh of relief.

 

Tech Giants Rebound

Major U.S. tech companies with deep ties to China also surged. Apple, which manufactures 90% of its iPhones in China, saw its shares jump more than 7%. This follows the company’s recent earnings report revealing that tariffs were expected to add $900 million in costs for the current quarter.

Meanwhile, Amazon shares rose over 8%, benefiting from its reliance on Chinese suppliers for many of the products sold on its platform.

U.S.-listed Chinese tech companies like Alibaba, JD.com, and Baidu also experienced significant gains, signaling renewed investor confidence in the prospects of improved U.S.-China trade relations.

 

A Boost to Investor Sentiment

The agreement between the U.S. and China, which halts many of the reciprocal tariffs that have plagued the tech and semiconductor industries, marks a turning point in trade negotiations. Over the past few years, trade disputes had disrupted supply chains, hurt profitability, and created uncertainty for companies like Apple and Nvidia.

Daniel Ives, the global head of technology research at Wedbush Securities, called the development “a huge win for the bulls.” He added, “With U.S./China clearly on an accelerated path for a broader deal, we believe new highs for the market and tech stocks are now on the table in 2025. This morning is the best-case scenario post this weekend’s talks.”

 

What’s Next?

While this agreement provides much-needed relief, analysts caution that it is only a temporary pause in the broader trade war. Some products, including semiconductors, have been exempt from tariffs temporarily, but the U.S. has signaled that these exemptions could be revisited.

As negotiations continue, investors will likely focus on the next steps in the process, with hopes of a permanent resolution to trade tensions. For now, however, the pause in tariffs has provided a much-needed boost to markets and has reignited optimism in the tech sector.

 
 


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