Trump's Tariff Moves Spark European Stock Rally

European shares surged as technology stocks rallied following U.S. President Donald Trump's exclusion of smartphones and computers from China tariffs. The pan-European STOXX 600 climbed after weeks of market volatility, while chip-related firms and banks saw notable gains. Uncertainty remains around future tariff policies.

European stocks saw a significant uptick on Monday, driven largely by a rally in technology shares. U.S. President Donald Trump's decision to exclude smartphones and computers from hefty China tariffs provided a much-needed respite for markets that have faced steep fluctuations recently.

The pan-European STOXX 600 rose 2.1% in early trading, rebounding after recording a third consecutive week of losses. Market instability caused by tariff discussions had pulled the index down roughly 12% from its peak.

German, French, Spanish, and UK indexes posted gains, with tech firms like Infineon and ASML seeing increases of up to 4.2%. Despite investor optimism, uncertainty over tariff policies remains as Goldman Sachs adjusts market forecasts downward in response to these dynamics.

(With inputs from agencies.)