Global stock markets surged on Monday following President Donald Trump’s decision to relax certain tariffs, bringing a temporary respite to investors navigating the volatile trade landscape. The decision, particularly impacting the tech sector, boosted stocks worldwide, though concerns over the long-term effects of tariffs persist.
In the U.S., the S&P 500 jumped 1.5% in early trading, while the Dow Jones Industrial Average gained 441 points, or 1.1%. The Nasdaq composite saw the most significant rise, climbing 2%. Major technology companies such as Apple, Nvidia, and Dell led the charge, fueled by Trump’s announcement that some electronics, including smartphones and computers, would be exempt from additional tariffs. This exemption is expected to reduce costs for U.S. importers, offering some relief to businesses who feared that steep tariffs could ultimately result in higher prices for consumers.
Apple rose 5.3%, Nvidia gained 2.3%, and Dell Technologies jumped 5.9%, as investors reacted positively to the news. The relief was felt beyond U.S. borders, with European markets also experiencing strong gains. Stocks in France climbed 2.2%, while Germany saw an increase of 2.7%, and the UK’s markets rose 1.7%.
However, the optimism may be short-lived, as Trump’s tariff policies have often been unpredictable. The most recent tariff exemptions on electronics are only temporary, with no guarantees that the relief will last. Investors remain cautious, aware that the uncertainty surrounding trade policy continues to hang over global markets.
Another encouraging sign for investors was the bond market, which showed signs of stabilizing after last week’s sharp increase in Treasury yields. The yield on the 10-year Treasury eased back to 4.40% after reaching 4.48% on Friday, signaling a reduction in investor anxiety. The rise in yields last week had previously rattled financial markets, as U.S. government bonds are traditionally considered safe investments during times of market stress.
Corporate earnings also played a role in driving the markets. Goldman Sachs saw a 2.7% increase after reporting stronger-than-expected profits for the latest quarter, joining other major banks like JPMorgan Chase and Morgan Stanley in posting solid results. Investors are closely watching upcoming earnings reports, including those from Bank of America, United Airlines, and Netflix, for insight into how the ongoing trade war will impact company profits.
Meanwhile, oil prices saw modest increases, with U.S. benchmark crude rising by around 1% to just above $62 per barrel. Brent crude also saw a slight gain, climbing to $65.57 per barrel. However, the Organization of the Petroleum Exporting Countries (OPEC) lowered its growth forecast for global oil demand, citing the adverse effects of U.S. trade tariffs.
Gold, typically a safe-haven investment, retreated from its record highs, trading 0.7% lower at around $3,220 per ounce. Despite this pullback, investment bank Goldman Sachs has raised its 2025 target for gold to $3,700 an ounce, with some analysts predicting it could reach $4,000 by 2026.
The trade war between the U.S. and China continues to cause turbulence in global markets. China’s Ministry of Commerce described Trump’s recent tariff relief as a “small step” and urged the U.S. to cancel the tariffs entirely. Despite Trump’s temporary pause on some duties, tensions remain high, with China retaliating by increasing tariffs on U.S. products.
As the trade dispute rages on, markets remain volatile, with investors carefully watching each development for signs of resolution—or further escalation.
