Technology stocks bounced Tuesday after three rocky trading sessions, spurred by rising optimism that President Donald Trump could potentially negotiate tariff deals with world leaders.
Nvidia and Tesla led the “Magnificent Seven” group’s gains, rallying about 5%. Meta Platforms, Amazon, Apple, Microsoft and Alphabet rose about 2%.
The sector is coming off a wild trading session after speculation that the White House could potentially delay tariffs due to volatile swings in the market. Alphabet, Meta, Amazon and Nvidia finished higher, while Apple, Microsoft and Tesla posted losses.
Trump’s wide-sweeping tariff plans have sparked violent turbulence over the past three trading sessions. Trading volume on Monday hit its highest in nearly two decades. Technology stocks gyrated after the Nasdaq Composite posted its worst week in five years and the Magnificent Seven group lost $1.8 trillion in market value over two trading sessions.
Semiconductor stocks also rebounded Tuesday, with the VanEck Semiconductor ETF jumping more than 3% to build on a more than 2% gain from the previous session. Advanced Micro Devices, Lam Research and Micron Technology jumped about 3%.
Chipmakers were excluded from the recent tariffs but have come under pressure on worries that higher duties could diminish demand for products they are used in and slow the economy. The sector is also expected to see tariffs further down the road.
Elsewhere, Broadcom surged 7% after announcing a $10 billion share buyback plan through the end of the year. Marvell Technology also bounced more than 7% after agreeing to sell its auto ethernet business for $2.5 billion in cash to Infineon Technologies.
