Market Rally Amid Tariff Exemptions: Tech Stocks Surge Amidst Uncertainty

U.S. shares rose as the White House exempted smartphones and computers from tariffs, despite potential semiconductor levies. The exemption boosted the Dow Jones and S&P 500 by 0.8%, while Apple led tech shares in a 0.6% Nasdaq rise. However, policy uncertainties continue to impact markets globally.

U.S. stock markets experienced gains on Monday after the White House announced exemptions for smartphones and computers from U.S. tariffs, although President Trump suggested that semiconductor levies remain a possibility. The Dow Jones Industrial Average and the S&P 500 both appreciated by about 0.8%, with the Nasdaq Composite climbing approximately 0.6%, buoyed by technology stocks like Apple, which saw a 2% increase.

These stock movements came after a 5.7% rally in the S&P 500 the previous week, despite an 8% decline in 2025. The tariff exemptions, which cover 23% of U.S. imports from China, provided relief for manufacturers but generated limited support for U.S. government bonds and resulted in a weaker dollar. Morgan Stanley analysts indicated that easing trade tensions reduced the short-term recession risk but the ongoing policy fluctuations could sustain volatility for businesses and consumers.

International markets also demonstrated positive momentum, as European and Asian indices climbed, benefiting from missing the end of the Wall Street rally. The STOXX 600 index and MSCI's Asia-Pacific index outside Japan gained following losses the previous week. Despite positive earnings reports from firms like Goldman Sachs, concerns remain over U.S. Treasury market volatility and currency impacts, as interactions between global economies continue to influence performance.

(With inputs from agencies.)