U.S.-China trade truce boosts tech and chip stocks: Apple, Amazon, Nvidia lead gains
A 90-day pause in reciprocal tariffs between the United States and China drives sharp gains in tech stocks, offering relief to investors amid ongoing trade tensions.
Global technology and semiconductor stocks surged on Monday after the United States and China agreed to a 90-day pause on most of their reciprocal tariffs. The agreement was reached during weekend talks aimed at easing trade tensions between the world’s two largest economies.
Major U.S. technology companies with significant exposure to China, including Amazon and Apple, experienced notable premarket gains. The temporary easing of trade restrictions offered reassurance to investors concerned about supply chain disruptions and rising costs across the tech sector.
Tech and semiconductor stocks react to tariff pause
Shares of major semiconductor and electronics companies rallied following the announcement. In the U.S., Nvidia rose by approximately 4% in premarket trading despite ongoing export restrictions to China. AMD and Broadcom both gained around 5%, while Qualcomm saw similar upward movement. Marvell Technology, which had recently postponed an investor day due to macroeconomic uncertainty, jumped 7.5% in early trading.
Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest chipmaker, saw its U.S.-listed shares increase by about 4% before market open. In Europe, key players like ASML, which provides essential equipment for advanced chip production, climbed 4.5%. Infineon Technologies also posted a solid advance, highlighting the global impact of the U.S.-China trade developments.
Amazon and Apple are among the tech companies that benefit from the tariff truce. Photo: BBN Times
Relief for big tech and Chinese firms listed in the U.S.
Companies heavily reliant on Chinese manufacturing and sales also saw stock gains. Apple, which manufactures about 90% of its iPhones in China and recently warned of $900 million in additional costs due to tariffs, saw its shares rise by over 6%. Amazon surged more than 8%, reflecting investor optimism as many of its marketplace sellers source products from China.
Chinese tech giants listed on U.S. exchanges also rebounded. Alibaba, JD.com, and Baidu all posted gains, signaling renewed investor confidence amid signs of de-escalation. While the tariff relief is temporary, market analysts suggest the developments could pave the way for broader trade negotiations and market growth in 2025.
