Global Stock Market Rises Amid Tariff Relief
NEW YORK (AP) — Global stock markets experienced a surge on Monday after President Donald Trump relaxed certain tariffs, albeit temporarily, while tensions in the U.S. bond market appear to be easing.
By afternoon trading, the S&P 500 had risen by 0.2%, although trading remains volatile, reversing most of its initial 1.8% gain. The Dow Jones Industrial Average increased by 57 points, or 0.1%, at 12:59 p.m. Eastern time, while the Nasdaq composite slipped by 0.1%.
Trump’s exemption of smartphones, computers, and other electronics from several tariffs has provided a boost for tech firms like Apple, which rose by 2.1%, and Dell Technologies, up 3.5%. This exemption should alleviate pressure on U.S. importers, removing the need for them to either absorb increased costs or raise prices for consumers.
Stock markets internationally also reacted positively to the cooling of Trump’s trade tensions with China, the world’s second-largest economy, with increases of 2.4% in France, 2.9% in Germany, 1.2% in Japan, and 1% in South Korea.
However, this optimism may be short-lived, with Monday morning’s fluctuations highlighting the uncertainty that surrounds Trump’s trade policies. His administration has indicated that the latest exemption on electronics is temporary, which could hinder long-term planning for businesses facing daily changes in the landscape. This uncertainty contributed to significant volatility in the U.S. stock market last week as investors adjusted to Trump’s tariff actions, raising concerns of a potential recession if tariffs remain high.
In the midst of this, China’s commerce ministry expressed cautious optimism, calling the tariff changes a small step while urging the U.S. to eliminate all remaining tariffs. During his diplomatic tour in Southeast Asia, China’s leader Xi Jinping remarked that no one benefits from a trade war, positioning China as a stabilizing force in contrast to Trump’s aggressive tariff strategies.
On Wall Street, Goldman Sachs saw a 1.7% increase following better-than-expected quarterly profits, joining other major banks like JPMorgan Chase and Morgan Stanley in positive performance. The bond market is also showing signs of stability, with Treasury yields dropping from a recent spike, which had unsettled investors including Trump, who noted that such moves indicated investor discomfort regarding market conditions.
