Tech stocks surged Monday after the Trump administration exempted key electronic devices such as smartphones, laptops and chips from a new wave of tariffs on Chinese products.
Apple’s stock rose 2.2% as investors welcomed the decision Protects many technical products from customs duties It threatened to dramatically increase consumer prices.
Stocks have fallen by more than 9% in the past two weeks amid concerns that the iPhone (mainly manufactured in China) will face a significant price rise under the proposed tariff rate of 145%.
The high-tech Nasdaq rose 0.6% or 107 points. Meanwhile, the S&P 500 increased by 0.8%.
The Dow Jones industrial average rose 300 points (over 0.8%).
Friday announcement by the White House We have exempted 20 categories of technical products from the drastic import taxes announced earlier this month.
The move has led major hardware manufacturers and semiconductor companies to lead profits and drive global gatherings of high-tech stocks.
Dell and HP jumped to 4% and 2.6%, respectively.
European and Asian semiconductor stocks also gathered, with Infineon, ASM International and Foxconn among the top performers.
“Eliminating the worst-case scenario is a support element for the sector (at least temporarily), at least,” Equita analyst Alberto Ggra told Reuters.
He added that the exemption will help stem the total supply cut-off that could have occurred if tariffs on Chinese-made electronics had been in effect.
Market responses suggest that investors believe control over potential fallout from trade policies shows greater awareness, particularly for inflation-absorbed consumers who rely on smartphones, laptops and other electronic devices.
Tariffs have prompted fear of the supply chain disruption competition seen during the Covid-19 pandemic and increased input costs for tech companies.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, told Reuters:
“Instead, this grace and the news that further tariffs will be months away will give Apple time to build US stocks to cover the current iPhone sales cycle without the need for a knee price hike.”
Still, the relief may prove temporary.
Commerce Secretary Howard Lutnick warned on Sunday that the administration is planning a new taxation targeting semiconductors and technology components under another Section 232 national security investigation.
“We look forward to some new measures in the coming months,” he said.
President Trump bolstered his message in a social media post, warning that “no one is “off-hook” with tariffs,” and said the exemption “is subject to another framework” under one framework.
Uncertainty does not prevent a short-term surge in investor trust.
Asian suppliers, closely linked to US tech companies, also recorded profits. Foxconn rose 3%, Quanta Advanced 5.8%, and Inventec rose 7.8% before it rose 4.1%.
However, broader economic concerns remain.
A Wall Street Journal survey, which was launched in the wake of Trump’s April 2nd tariff announcement, found that economists are now pegging the possibility of a US recession at 45%.
Meanwhile, hedge fund managers Ray Dario said the economy is “full of contraction.”
For now, tech stocks are enjoying a rare, calm moment.
However, with further tariffs looming, the industry’s long-term trajectory remains extremely uncertain.
