U.S. Stocks Move Sharply Higher On Tech Tariff Exemptions

Stocks moved sharply higher at the start of trading on Monday and have seen continued strength over the course of the session. The major averages have all shown notable moves to the upside, extending the rally seen over the course of last Friday’s session.

Currently, the major averages are off their best levels of the day but still firmly positive. The Nasdaq is up 14.22 points or 1.9 percent at 17,038.68, the S&P 500 is up 83.61 points or 1.6 percent at 5,446.97 and the Dow is up 467.69 points or 1.2 percent at 40,680.40.

Technology stocks have helped lead the way higher after U.S. Customs and Border Protection guidance issued late Friday revealed certain tech products will be excluded from President Donald Trump’s “reciprocal tariffs.”

The excluded products purportedly include smartphones and computers as well as other devices and components like semiconductors.

However, adding to the uncertainty surrounding tariffs, Trump claimed in a post on Truth Social that there was “no Tariff ‘exception’ announced,” noting the products are still subject to exiting 20 percent fentanyl tariffs are just moving to a “different Tariff ‘bucket.'”

“NOBODY is getting ‘off the hook’ for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!” Trump said.

“We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations,” he added. “What has been exposed is that we need to make products in the United States, and that we will not be held hostage by other Countries.”

Computer hardware stocks are turning in some of the market’s best performances on the news of the tariff exemptions, driving the NYSE Arca Computer Hardware Index up by 4.1 percent.

Significant strength is also visible among semiconductor stocks, as reflected by the 2.2 percent surge by the Philadelphia Semiconductor Index.

Out of the tech sector, brokerage stocks are seeing considerable strength on the day, with the NYSE Arca Broker/Dealer Index jumping by 2.0 percent.

Biotechnology, networking and banking stocks have also shown notable moves to the upside, moving higher along with most of the other major sectors.

In overseas trading stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index jumped by 1.2 percent, while Hong Kong’s Hang Seng Index surged by 2.4 percent.

The major European markets have also shown significant moves to the upside on the day. While the German DAX Index is up by 3.0 percent, the French CAC 40 Index is up by 2.6 percent and the U.K.’s FTSE 100 Index is up by 2.2 percent.

In the bond market, treasuries are regaining ground after moving sharply lower last week. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 7.6 basis points at 4.417 percent.