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 increased trade voltages and 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 technology products from tariffs that had threatened to dramatically raise consumer prices.
The shares had fallen more than 9% over the last two weeks in the midst of the fear that the iPhone – mainly produced in China – will face significant increases in 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 analyst in Equita, 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 potential consequences of its trading policies-especially on customers associated with inflation based on smartphones, laptops and other electronics.
The fees had sparked the fear of a rival to the breakdown of the supply chain seen during the Covid-19 pandemic, as well as higher access costs for technology firms.
“The net effect is positive for technology, especially for giants like Apple, who could have seen their entire price strategy thrown into disorder under China’s proposed tariffs 145%,” Reuters Matt Britzman, high capital analyst at Hargreaves Lansdown, told Reuters.
“On the contrary, this repetition and news that further tariffs will be a few months away, gives 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 post warning that “no one is removing” 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 Advanced 5.8% and Inventory 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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