RICHARD A. BROOKS / AFP Via Getty Images
Takeaways from the Key Takeaways
- Global stocks are rallying Monday after President Donald Trump temporarily exempted smartphones, computers, and semiconductors from his "reciprocal" tariffs.
- The Stoxx Europe 600 index is rising 2%, the Nikkei closed up 1.2%, and Hong Kong's Hang Seng finished 2.4% higher.
- Analysts said investors remain worried about holding assets based on the U.S. dollar, which is down against major currencies Monday.
Global stocks are up Monday after President Donald Trump temporarily excluded smartphones, computers, semiconductors, and other electronic devices from his “reciprocal”, tariffs.
The shares are soaring due to the reprieve of imports for consumer electronics, which many come from China. Dow Jones Industrial Average and S&P 500 futures are up roughly 1%, and Nasdaq futures are 1.3% higher. Magnificent Seven stocks continue to rise, with Apple (AAPL), which is a part of the group, jumping 5% on premarket trading. This extends Friday’s gains.
Overseas, the Stoxx Europe 600 index is rising 2%, the Nikkei closed up 1.2%, and Hong Kong's Hang Seng finished 2.4% higher.
China called the tariff pause "a small step for the U.S. side to correct its wrong practice of unilateral 'reciprocal tariffs,'" according to a statement from the state-owned Xinhua News Agency.
After recent increases, yields on 10-year Treasuries are now at 4.44%. Analysts say investors are still worried about holding assets that rely on the U.S. currency, which was down against major currencies on Monday. MUFG stated in a note “uncertainty about China’s appetite (for U.S. Treasury bonds) is likely also contributing to the worsening of investor confidence in US assets.” China is the biggest holder of Treasurys.
