A temporary U.S.-China trade truce triggered a sharp rally in major tech stocks on Monday. Tesla and Amazon led the gains, with both companies surging in early trading. Tesla climbed nearly 8%, while Amazon jumped 7.7% as investors welcomed signs of cooling trade tensions.
Other members of the “Magnificent Seven” also saw strong gains. Apple advanced 6.1%, and Meta rose 5.6%. Nvidia added 4.6%, while Google and Microsoft gained 2.7% and 2.3%, respectively. The tech-heavy rally marked a swift turnaround from recent market losses.
The U.S.-China trade truce, announced after two days of intense talks, included a 90-day tariff reduction deal. The U.S. will cut tariffs on Chinese goods from 145% to 30%. In return, China will lower duties on U.S. imports from 125% to 10%.
On the other hand, Dan Ives of Wedbush called the development “very bullish news for the tech trade.” He noted Tesla’s supply chain depends heavily on China. Amazon, likewise, has deep commercial ties with Chinese suppliers and advertisers.
According to Raymond James, 30% of Amazon’s goods and 14% of its ad revenue come from China. Meta and Google also rely on Chinese advertisers, accounting for 11% and 6% of ad sales, respectively. Apple, meanwhile, makes about 90% of its iPhones in China, which contributed 17% of its 2024 revenue.
Despite the rally, analysts warned that concerns remain. Nvidia, for example, still faces U.S. export bans on certain AI chips. The U.S.-China trade truce is only temporary and leaves several issues unresolved.
Nevertheless, the U.S.-China trade truce restored short-term confidence across financial markets. Investors are now watching for follow-up agreements or changes in chip policy.
Overall, the U.S.-China trade truce shows the markets react quickly to even temporary relief. But lasting stability will require deeper negotiations.
For more updates on this story, visit DC Brief.
