Technology shares increased on Monday after the Trump administration excluded the main electronics such as intelligent phones, laptops and chips from a new wave of tariffs for Chinese goods – offering a return to a sector that had been returning from trade growth and assembling supply chain uncertainty.
Apple’s shares led to return, climbing 5.3% at the beginning of Monday’s trade session as investors welcomed the decision to protect many products from tariffs that had threatened to increase consumer prices dramatically.
The shares had fallen more than 9% over the last two weeks between the Faars that the iPhone – mainly produced in China – will face rising prices below a proposed tariff rate of up to 145%.
Severe technical nasdaq was dumped 1.3%, or 215 points. Meanwhile, S&P 500 progressed 1%, or nearly 60 points.
The Dow Jones industrial average increased by 500 points behind the opening bell and increased by more than 300, or about 1%, from 9:40 pm.
Late announcement Friday from the White House excluded 20 categories of technology goods from comprehensive import taxes discovered earlier this month.
Mass promoted a global rally in technology shares, with key equipment manufacturers and semiconductor companies leading profits.
Dell and HP were dropped 6% and 4%, while Chipmaker Nvidia added 0.8% to early trading.
Semiconductor shares throughout Europe and Asia also gathered, with Infineon, ASM International and Foxconn among the best performers.
“Removing the worst case scenario is an element of (at least temporarily) support for the sector,” Alberto Gegraph, an Affairs analyst, told Reuters.
He added that the exceptions help remove a total supply block that may have arisen if tariffs on electronics made by the Chinese were left in the country.
Market reaction suggests that investors believe that the administration is showing greater awareness of the possible consequences from its trading police-especially on inflation-filled customers relying on smartphones, laptops and other electronics.
The tariffs had prompted faars of a rival to break the supply chain seen during the Covid-19 pandemic, as well as higher access to technology firms.
“The net effect is positive for technology, especially for giants like Apple, which can be seen their entire price strategy thrown at 145% of China’s proposed tariffs,” Reuters Matt Britzman, high capital analyst at Hargreaves Lansdown, told Reuters Mattdown.
“On the contrary, this repetition and news that further tariffs will be a few months away, give Apple time to build its inventory in the US to cover the current iPhone sale cycle without the need for knee prices.”
However, relief can be temporary.
Trade Secretary Howard Lutnick warned on Sunday that the administration is planning new taxes aimed at semiconductors and components of technology under a special section 232 National Security Investigation.
“We expect some new measures in the coming months,” he said.
President Trump reinforced the message with a social media after warning that “no one is lifting the” fee “, saying that while exceptions can be implemented under one frame,” they will be covered under another. “
Uncertainty did not prevent a short -term increase in investor confidence.
Asian suppliers closely linked to US technology firms also posted profits: Foxconn increased up to 7.8% before choosing 3%, Quanta progressed 5.8% and Inventc won 4.1%.
But the wider economic concerns remain.
A Wall Street Journal study conducted in the wake of the April 2 Trump tariff announcement found that economists now capture the possibility of an American recession to 45% – nearly double the norm from January.
Meanwhile, Ray Dalio Defense Fund manager noted that the economy is “shrinking flirtation”.
Right now, technology actions are enjoying a rare moment of calm.
But with further approaching tariffs, the long -term industry trajectory remains deeply unsafe.
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