US equity markets surged Monday, with technology stocks leading gains after President Donald Trump unexpectedly granted tariff exemptions on smartphones, computers, and key semiconductor components, offering a temporary reprieve for the sector rattled by trade tensions.
The Dow Jones Industrial Average climbed 500 points, or more than 1%, while the S&P 500 rose 1.8%. The tech-heavy Nasdaq Composite outperformed with a 2.4% advance.
The move followed late Friday guidance from US Customs and Border Protection confirming that several consumer tech products would be spared from the administration’s new “reciprocal” tariffs.
Apple shares jumped more than 5% in early trade on the news, while Nvidia added around 2%.
Apple has been one of the biggest casualties of the escalating trade war, with the tech giant shedding nearly $640 billion in market capitalization over just three trading sessions following the reciprocal tariff announcement.
Trump tariff uncertainty remains
However, the relief may prove short-lived.
Over the weekend, Trump and Commerce Secretary Howard Lutnick clarified that the exemptions were not permanent.
Speaking Sunday, Lutnick detailed plans for what he termed “a special focus-type of tariff” specifically targeting smartphones, computers, and other electronics, anticipated within “a month or two.”
In a Truth Social post, Trump noted that these items remain “subject to the existing 20% Fentanyl Tariffs” and were simply moved into a different tariff category, leaving open the possibility of future policy reversals.
The conflicting signals highlight the persistent uncertainty surrounding US trade policy, which has whipsawed markets over the past two weeks.
Last week marked one of Wall Street’s most volatile stretches in years.
The CBOE Volatility Index (VIX) spiked above 50 on Thursday as markets erased gains from a historic rally the day before, triggered by a 90-day suspension of many new tariff rates.
Despite Monday’s gains, major indices remain sharply lower since the announcement of Trump’s sweeping “liberation day” tariff plan earlier this month.
The S&P 500 has fallen 5.4%, the Nasdaq Composite is down about 5%, and the Dow has dropped 4.8% over that span.
Wall Street analysts remain cautious
The ongoing trade policy turbulence has prompted Wall Street strategists to slash year-end targets for the S&P 500.
Citi’s Scott Chronert became the latest to cut forecasts, lowering his year-end index target to 5,800 from 6,500, citing weaker earnings prospects and valuation pressure amid policy unpredictability.
Citi now expects S&P 500 earnings of $255 per share, down from a prior estimate of $270.
Goldman Sachs’ David Kostin also reduced his target, now at 5,700, having trimmed it twice over the past month, reflecting deteriorating earnings expectations and increased recession risk.
RBC Capital Markets’ Lori Calvasina cut her outlook earlier this month to 5,550.
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