KEY TAKEAWAYS
- Global stocks are rallying Monday after President Donald Trump temporarily exempted smartphones, computers, and semiconductors from his “reciprocal” tariffs.
- The Stoxx Europe 600 index is rising 2%, the Nikkei closed up 1.2%, and Hong Kong’s Hang Seng finished 2.4% higher.
- Analysts said investors remain worried about holding assets based on the U.S. dollar, which is down against major currencies Monday.
Global stocks are rallying Monday after President Donald Trump temporarily exempted smartphones, computers, and semiconductors from his “reciprocal” tariffs.
The reprieve for consumer electronics imports, many of which come from China, is driving shares higher. Dow Jones Industrial Average and S&P 500 futures are up roughly 1%, and Nasdaq futures are 1.3% higher. Magnificent Seven stocks are rising, with shares of Apple (AAPL) jumping 5% in premarket trading, extending Friday’s gains.
Overseas, the Stoxx Europe 600 index is rising 2%, the Nikkei closed up 1.2%, and Hong Kong’s Hang Seng finished 2.4% higher.
China called the tariff pause “a small step for the U.S. side to correct its wrong practice of unilateral ‘reciprocal tariffs,'” according to a statement from the state-owned Xinhua News Agency.
Following recent surges, the yield on 10-year Treasuries is pulling back at 4.44%. Still, analysts said investors remain worried about holding assets based on the U.S. dollar, which is down against major currencies Monday. MUFG said in a note that “uncertainty over China’s appetite for (U.S. Treasury) bonds is likely also playing a role in worsening investor confidence in US assets.” China is one of the biggest holders of Treasurys.
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