• US stock markets surged due to tariff exemptions on electronics.
• Apple and Nvidia saw significant gains as tariffs were rolled back.
• Despite the rally, uncertainty regarding future tariff changes lingers.
• Global markets also experienced boosts following the U.S. announcement.

US stock markets opened higher on Monday after the White House announced exemptions for imports of Chinese-made smartphones and other electronics from tariffs. This move heightened investor optimism, leading to significant gains, particularly in technology sectors. Apple's stock price notably rose as much as 5.2%, reflecting the company's reliance on Chinese manufacturing for its iPhone products, which could have faced severe price increases under the previous tariff regime, according to BBC.

Following the tariff relief, the S&P 500 jumped 1.5%, while the Dow Jones Industrial Average rose 441 points, or 1.1%, showcasing a robust rally across the board. The tech-heavy Nasdaq index saw a 2% increase, buoyed by significant gainers such as Nvidia and Dell Technologies, both benefiting from the renewed trade atmosphere. As one report noted, “The Standard and Poor’s 500 was 1.5% higher in early trading,” highlighting the immediate uptick in investor sentiment driven by the tariff exemptions, according to Los Angeles Times.

However, experts caution that the relief may be short-lived due to ongoing uncertainties. President Trump emphasized the need for further study on new tariffs for electronic components, and there are warnings that the existing tensions could precipitate a recession. John Canavan from Oxford Economics remarked, “The lack of a consistent, clear path for trade policy has added to the overall level of uncertainty for markets,” indicating that the current rally hinges on continued flexibility from the White House regarding tariffs, as mentioned in a report by CBS News.

Reactions from international markets were similarly positive, with European stock indexes rising by notable margins. Indices rose 2.4% in France and 2.7% in Germany, driven by the optimism stemming from the eased trade tensions between the United States and China. As China's commerce ministry expressed, the exemptions were welcomed as a small step but called for a complete cancellation of all tariffs, underlining the complex dynamics still at play between the two nations, according to Los Angeles Times.