Shares of the world’s biggest tech firms surged on Monday after the United States and China agreed to halt most reciprocal tariffs, lifting market sentiment and fueling the strongest single-day rally for the so-called “Magnificent 7” since April.
The group, which includes tech heavyweights like Apple, Amazon, and Nvidia, added a combined $837.5 billion in market value following news of the trade truce. The agreement, reached over the weekend, provided temporary relief for industries hit hardest by cross-border economic tensions, especially the semiconductor sector.
Investors welcomed the development after months of anxiety over strained relations between Washington and Beijing, which had raised fears of supply chain disruptions and rising costs for firms with global operations.
Shares of Nvidia climbed roughly 5%, despite ongoing chip export restrictions to China. Rival chipmaker AMD posted similar gains, while Broadcom and Qualcomm each advanced about 6% and 5%, respectively. Marvell Technology, which recently delayed a key investor event due to macroeconomic volatility, surged 8%.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading chip producer, saw its U.S.-traded shares jump 6%. In Europe, ASML, a vital supplier of advanced semiconductor manufacturing equipment, rallied 6%, while Infineon Technologies also saw a notable rise.
The tech sector, especially semiconductor firms and consumer electronics manufacturers, had been particularly vulnerable to tariff threats under President Donald Trump’s trade strategy. Though chip-related products were granted a temporary exemption last month, officials warned that targeted duties could still return.
Apple, which manufactures the vast majority of its iPhones in China, reported during its recent earnings call that tariffs would cost the company $900 million this quarter alone. Its stock gained 6% on Monday. Amazon, which depends on Chinese suppliers through its vast third-party seller network, climbed 8%.
Chinese tech companies listed on U.S. exchanges also rallied. E-commerce platforms Alibaba and JD.com, along with internet giant Baidu, moved sharply higher as investors anticipated a potential thaw in U.S.-China tech relations.
Analysts said the move could set the stage for broader trade agreements and continued momentum in tech markets heading into 2025.
“With the U.S. and China clearly accelerating toward a larger deal, we believe new market highs are within reach next year,” said Daniel Ives, global head of tech research at Wedbush Securities. “This morning is a huge win for the bulls and a best-case outcome after weekend talks.”
Despite the optimism, experts cautioned that the pause in tariffs is temporary and future negotiations could reignite uncertainty. Still, Monday’s rebound underscored how sensitive markets remain to geopolitical developments — and just how quickly investor sentiment can shift.
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