US technology stocks soared on Monday, igniting a powerful rally across Wall Street after the United States and China announced a surprise truce in their long-running trade war.
The agreement, which includes a sharp reduction in tariffs and a 90-day pause on new trade measures, has eased investor concerns and triggered a surge in shares of major tech giants including Apple, Nvidia, Amazon, Microsoft, and Meta.
Relief Rally Sweeps Big Tech
The Nasdaq Composite led the charge, jumping nearly 4% in early trading, as investors rushed back into technology stocks that had been battered by months of tariff uncertainty. The S&P 500 and Dow Jones Industrial Average also posted significant gains, with the Dow climbing over 1,000 points in a single session.
- Apple (AAPL) surged 5.7% to $209.80, rebounding strongly as the company’s efforts to diversify its supply chain and solid quarterly results reassured investors. Apple’s exposure to China had been a key risk, but the tariff rollback provided immediate relief.
- Nvidia (NVDA) climbed 3.7% to $120.99, as the semiconductor sector benefited from the pause in export controls and tariffs that had threatened global chip sales and supply chains.
- Amazon (AMZN) led the rally with a remarkable 7.9% gain, reaching $208.36. The e-commerce giant is heavily reliant on Chinese suppliers and vendors, making it a prime beneficiary of the trade truce.
- Microsoft (MSFT) advanced 0.7% to $441.97, buoyed by strong cloud earnings and renewed optimism for global tech spending.
- Meta Platforms (META) jumped 6% to $628.19, as investor appetite for digital advertising and AI-driven growth returned.
Market Optimism Returns
The truce, which slashes US tariffs on Chinese goods from 145% to 30% and reduces China’s tariffs on American products from 125% to 10% for 90 days, has been described by analysts as a “huge win for the market and bulls.” The move is expected to ease supply chain constraints, lower input costs, and restore confidence in the outlook for global technology companies.
Investors had previously pulled back from tech stocks amid fears of escalating trade tensions and supply disruptions. Monday’s rally signals a dramatic reversal, with Wall Street analysts now anticipating a more stable environment for earnings growth and innovation.
