Tech stocks rally after Trump halts tariffs

Global stock markets experienced a significant surge following President Donald Trump’s announcement of a 90-day suspension on tariffs for several countries. The tech-heavy Nasdaq Composite Index soared over 12%, marking its second-best day ever and the most substantial gain since January 2001.

Leading technology firms saw remarkable recoveries. Apple’s shares jumped over 15%, achieving their best performance since January 1998, after enduring a severe four-day decline that erased nearly $800 million in market value.

Tesla and Nvidia also experienced substantial gains, rising 18% and 22% respectively, while Meta Platforms increased by 15%. Amazon, Microsoft, and Alphabet each posted gains of around 10%.

Asian markets mirrored this positive trend, with Japan’s benchmark index climbing more than 2,000 points shortly after the Tokyo exchange opened. Investors responded favourably to the tariff relief, anticipating reduced trade tensions and improved economic prospects.

Despite the optimism, concerns remain regarding ongoing trade disputes, particularly with China. While tariffs were paused for several nations, levies on Chinese imports were raised to 125%, potentially impacting companies with significant manufacturing operations in China, such as Apple.

Analysts caution that, despite the current market rally, the long-term implications of these trade policies warrant close monitoring.

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