Markets Rally After Trump Eases Electronics Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Global stock markets rallied Monday after President Trump temporarily lifted tariffs on electronics, easing investor fears. Tech giants like Apple and Nvidia led Wall Street’s rebound, with major indexes in Europe and Asia also surging. However, the tariff relief is short-term, leaving markets bracing for further volatility.
Markets React to Trump Tariff Pause: Quick Looks
- S&P 500 Gains: Up 1.5% after wild week of swings
- Dow Jones Surge: Climbs over 440 points in early trading
- Tech Stocks Lead: Apple, Nvidia, Dell see major jumps
- Tariff Easing: Smartphones, computers temporarily exempted
- Global Impact: Markets in Europe, Asia post strong gains
- Bond Market Calms: Treasury yields ease after sharp rise
- China Responds: Welcomes move but urges full tariff rollback
- Caution Ahead: White House says tariff break is only temporary
Markets Rally After Trump Eases Electronics Tariffs
Deep Look
NEW YORK — Global markets soared Monday as President Donald Trump temporarily paused tariffs on key electronic imports, offering a brief moment of calm after weeks of economic turbulence.
The S&P 500 jumped 1.5% in early trading following a volatile week marked by investor anxiety and historic market swings. The Dow Jones Industrial Average rose by 441 points (1.1%) while the Nasdaq composite surged 2%, fueled largely by gains in the tech sector.
Tech Stocks Drive Wall Street’s Rebound
Trump’s decision to temporarily exempt smartphones, computers, and other consumer electronics from the latest round of China tariffs gave markets a much-needed boost. The change helps U.S. importers avoid price spikes, allowing them to hold steady on pricing or protect profit margins.
Top tech stocks responded quickly:
These companies would have been among the hardest hit by electronics tariffs, given their deep exposure to Chinese manufacturing.
“It says we’re doing a good job,” Trump said of the stock rebound after announcing the tariff pause, while noting that financial markets were “getting a little queasy” in recent weeks.
Global Markets Follow U.S. Lead
Markets worldwide echoed the sentiment:
- France’s CAC 40 rose 2.4%
- Germany’s DAX climbed 2.7%
- Japan’s Nikkei gained 1.2%
- South Korea’s Kospi was up 1%
- Hong Kong’s Hang Seng soared 2.4%, while
- Shanghai’s Composite Index rose 0.8%
The reaction abroad shows just how tightly global economies are linked to U.S. trade policies, especially when they involve China, the world’s second-largest economy.
China Welcomes the Shift — Cautiously
China’s Ministry of Commerce released a statement Sunday calling the tariff relief “a small step in the right direction.” Still, the ministry called on the U.S. to cancel all tariffs imposed during the trade war.
On Monday, Chinese President Xi Jinping, while touring Southeast Asia, warned, “There are no winners in a trade war,” and emphasized China’s desire for stable, rules-based trade.
China also reported a 12.4% year-over-year surge in March exports, driven by companies rushing shipments ahead of tariff deadlines — a clear sign that Trump’s tariff maneuvers are influencing business timelines.
Bond Market Stabilizes Amid Policy Signals
Signs of easing tension appeared in the bond market as well. The 10-year Treasury yield dropped to 4.40%, retreating from a sharp spike to 4.48% last Friday. It had stood at just 4.01% the previous week, before investor fears caused yields to rise rapidly.
Treasury yields tend to fall when demand for safe-haven assets rises. Last week’s jump in yields reflected rising uncertainty — and perhaps a lack of confidence in U.S. stability amid tariff threats. The rebound today suggests renewed optimism, albeit fragile.
Banks Add to Wall Street’s Momentum
Wall Street’s upbeat mood was further bolstered by strong earnings reports from major banks:
- Goldman Sachs rose 2.7% after beating earnings estimates
- JPMorgan Chase and Morgan Stanley also posted positive results earlier in the week
These earnings, combined with tariff relief, paint a more resilient picture of corporate America — at least in the short term.
Relief May Be Temporary
Despite the market’s rally, the White House made it clear the tariff exemptions are temporary. Officials said the pause is meant to “monitor market response” and reassess in 90 days. Investors and businesses alike are bracing for a possible return to higher import costs.
The Trump administration’s tariff strategy has been marked by unpredictability — an approach that has kept investors on edge, especially after sharp bond yield fluctuations and a recent flight from the U.S. dollar.
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