This was the biggest move seen in these stocks since April 9, which was the day US President Donald Trump had announced his 90-day pause to the reciprocal tariffs that had roiled global equities.
Chipmakers contributed to the gains led by Nvidia, even as it is still not clear whether the curbs imposed on the company on shipping to China would be lifted or not. Its peers – AMD, Broadcom and Qualcomm, also gained between 5% and 6%.
Apple Inc., the manufacturer of iPhones, which still makes nearly 90% of its iPhones in China, surged 6%. The company had warned that it expects tariffs to add $900 million to its costs this quarter and most of the iPhones sold in the US during the ongoing quarter, will be manufactured in India.
Amazon.com also saw an 8% surge on Monday as many sellers on the platform rely on products that are manufactured in China.
“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.
Many experts have termed this as the best case scenario for the talks that were held between the two countries in Geneva over the weekend.
