US stocks rallied as investors welcomed a surprise move by President Donald Trump to temporarily exempt key technology products from new tariffs. The exemption, which includes smartphones, computers, and semiconductors gave a major lift to tech-heavy indices and set a bullish tone for the start of the week.
At 9:37 am GMT, the Dow Jones Industrial Average was up 413.95 points, or 1.03%, trading at 40,626.66. The S&P 500 rose 72.47 points to 5,435.83, marking a 1.35% gain, while the Nasdaq Composite surged 280.79 points, or 1.68%, to 17,005.25, led by outsized gains in the tech sector.
Tech giants rallied strongly in pre-market trading following the tariff announcement. Apple saw its shares jump more than 6%, while Nvidia added over 3%. The Technology Select Sector SPDR Fund (XLK) also climbed around 3% before the market opened, reflecting broad optimism across the technology space, as reported CNBC.
Commodity and bond markets also responded to the shifting trade landscape. Gold prices fell $24.20 to $3,220.40, a decline of 0.75%, as investor appetite for risk increased. Oil prices edged up by $0.61 to $62.11 per barrel, a gain of 0.99%, reflecting renewed optimism in global growth.
Bond yields dipped, with the 10-year US Treasury yield falling to 4.395%, down 0.098 basis points, or 2.18%, indicating strong buying interest. Meanwhile, the Volatility Index (VIX) — Wall Street’s “fear gauge” — dropped sharply by 12.33% to 32.93, signalling a drop in near-term market anxiety.
Meanwhile, Futures trading showed the S&P 500 up 1.2% and the Dow Jones Industrial Average ahead 0.9%, pointing to a strong start on Wall Street.
European markets surged in early trade: Germany’s DAX climbed 2.5%, France’s CAC 40 rose 2.3%, and London’s FTSE 100 added 1.9%, as per news agency AP. The rally was driven by renewed confidence in the tech sector, with investors anticipating short-term stability in supply chains and production costs.
In Asia, the momentum was equally robust. Japan’s Nikkei 225 closed 1.2% higher, Hong Kong’s Hang Seng rose 2.4%, and Shanghai’s Composite Index gained 0.8%. Notably, South Korean tech majors like Samsung Electronics and Advantest posted strong gains, benefitting from their deep links to the global semiconductor industry.
China’s March export growth, up 12.4% year-on-year, added to the region’s positive tone. The strong trade data underscored resilience in manufacturing, even amid ongoing tariff friction.
The US exemption announcement came shortly after China imposed tariffs of up to 125% on US goods in retaliation for escalating US duties, which have reached 145% on certain Chinese products. Though the latest move was framed as a temporary reprieve, President Trump emphasized over the weekend that no country—“especially not China”—would escape future tariffs.
Administration officials confirmed that new levies, especially on strategic goods like semiconductors, would be unveiled within weeks. Trump cited national security concerns and reiterated the goal of reshoring chip and pharmaceutical production.
Investor sentiment steady
Markets responded positively to the breathing room, despite lingering uncertainty. Last Friday, Wall Street closed on a high note: the S&P 500 rose 1.8%, the Dow added 1.6%, and the Nasdaq Composite jumped 2.1%. Strong quarterly earnings from JPMorgan Chase and Morgan Stanley helped bolster confidence.
The 10-year US Treasury yield, which had surged above 4.58% last week, eased to 4.44% Monday morning. While the bond market remains jittery, the retreat in yields suggests investors are cautiously rebalancing after sharp risk-off moves.
Currency markets also reflected shifting dynamics. The US dollar dipped slightly, with the yen strengthening to 143.16 per dollar. The euro firmed to $1.1388, and the British pound advanced to $1.3184.
Commodities
Oil prices ticked higher on improved demand outlooks. West Texas Intermediate rose 1.0% to $62.10, while Brent crude added 0.9% to $65.36. The gains reflect optimism that easing trade friction, even if temporary, could support industrial activity.
Gold, often a refuge in volatile times, edged down by $9 to $3,235 per ounce, as traders rotated back into equities and risk assets.