Members of the so-called Magnificent 7 group added an aggregate $837.5 billion in market value on Monday after the U.S. and China agreed to pause most tariffs on each other’s goods.
It marked the largest collective move for the group since April 9.
Technology stocks — such as semiconductor firms and smartphone makers — have been hit hard as trade tensions between the world’s two largest economies threatened to disrupt supply chains and hurt some of the biggest U.S. businesses.
But investors breathed a sigh of relief after talks between the U.S. and China over the weekend yielded a temporary pause in “reciprocal” tariffs.
In the U.S., NvidiaAMDBroadcomQualcomm
Other companies in the semiconductor supply chain also jumped. Marvell
Taiwan Semiconductor Manufacturing Co.
Semiconductors and some electronics received an exemption from President Donald Trump’s reciprocal tariffs last month, but the U.S. signaled the reprieve was temporary and that these products could still be in line for special duties.
Investors have been concerned about the impact on major tech stocks, especially those with exposure to China such as Apple and Amazon, whose shares have been under pressure this year.
Applemakes 90% of its iPhones in China, said during its earnings report this month that it expects tariffs will add $900 million to its costs for the current quarter. Apple shares rose about 6%.
U.S.-listed Chinese tech stocks also surged. Chinese e-commerce giants AlibabaJD.comBaidu
“With US/China clearly on an accelerated path for a broader deal we believe new highs for the market and tech stocks are now on the table in 2025 as investors will likely focus on the next steps in these trade discussions which will happen over the coming months,” Daniel Ives, global head of technology research at Wedbush Securities, said in a note on Monday.
“This morning is a huge win for the bulls and a best case scenario post this weekend in our view.”
International: Top News And Analysis
Read the full article <a href="Read More” target=”_blank”>here.