Tech Stocks Lead Stunning Wall Street Rebound After Tariff Exemption

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Stock futures surged Monday as tech stocks powered a broad market rebound following President Donald Trump’s surprise tariff exemption on smartphones, computers, and semiconductors. The exemption came late Friday through updated U.S. Customs guidance, delivering long-awaited relief to battered tech stocks and helping Wall Street reverse recent losses.

Futures tied to the Dow Jones Industrial Average jumped 422 points, or 1.1 percent. The S&P 500 futures gained 1.5 percent, while the Nasdaq-100 futures, tracking many of the largest tech stocks, climbed 1.8 percent. This reversal followed weeks of steep losses driven by Trump’s aggressive tariff strategy, which rattled investors across the technology sector.

Tech Stocks Surge on Tariff Relief but Risks Remain

Leading the rebound were familiar names. Apple surged more than five percent in premarket trading, while Nvidia added two percent. The broader Technology Select Sector SPDR Fund rose more than two percent. The relief rally came after tech stocks in the so-called Magnificent Seven group had lost significant ground. Apple alone had shed nearly $640 billion in market value over three trading sessions after Trump first announced the sweeping tariffs.

Despite the rebound, investor sentiment remains cautious. Trump and Commerce Secretary Howard Lutnick emphasized over the weekend that the exemptions are temporary. In a Truth Social post, Trump said that smartphones and related products remain subject to existing 20 percent tariffs and would soon fall under new sector-specific tariffs. Lutnick confirmed that new duties targeting semiconductors and technology supply chains will arrive within two months.

For tech stocks investors, this means continued headline risk. The latest rally provides relief, but the long-term landscape remains uncertain.

Market Optimism Returns but Volatility Lingers

Outside the tech sector, Monday's rally was supported by strong earnings reports. Goldman Sachs posted better-than-expected results, sending its shares up nearly three percent. Global markets also responded positively to the tariff pause. Hong Kong’s Hang Seng Index rose 2.4 percent, with its technology sector leading gains. Asian markets broadly moved higher, reflecting optimism that Trump’s temporary tariff relief could ease supply chain pressures.

Still, tech stocks remain vulnerable to policy shifts. Analysts noted that while the exemptions prevent immediate disruption, new tariffs are coming. Wedbush analyst Dan Ives called the exemption a necessary move to prevent damage to tech supply chains but warned that uncertainty surrounding U.S.-China trade negotiations remains high.

Investors should monitor future developments closely, particularly sector-specific tariffs aimed at semiconductors and electronics.

Will Tech Stocks Continue to Rise?

The broader rebound of tech stocks offers investors a critical window for repositioning. Some market strategists view this rally as an opportunity to buy into high-quality names at a discount. Others remain cautious, expecting more volatility as the U.S. and China continue their trade standoff.

The Nasdaq Composite and S&P 500 remain down five percent since the reciprocal tariffs were announced. The Dow Jones is down nearly five percent as well. Investors holding tech stocks should prepare for rapid market swings tied to future tariff policy updates and global trade developments.

What is the smartest investment strategy for tech stocks given the latest tariff developments? Tell us what you think!

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