U.S. stocks rallied Monday after the U.S. and China agreed to temporarily slash tariffs following negotiations over the weekend in Switzerland.
The Dow Jones Industrial Average surged 1035 points, or 2.5%. The S&P 500 popped 2.7%, and the Nasdaq Composite rose 3.5%. Apple (AAPL) surged 6.0%, up $12.20, to $210.47 per share as of 10:45am EDT.
CNBC:
Best Buy, which sells electronics and appliances vulnerable to tariffs, popped 7%. Dell Technologies and On Semiconductor climbed 7% and 9%, respectively. Amazon advanced more than 7%, and Apple jumped 6%. The iShares Semiconductor ETF (SOXX) jumped more than 6%.
“We believe peak uncertainty over trade has passed, but market volatility is likely to stay,” UBS head of fixed income Kurt Reiman wrote in a Monday note. “Our base case remains that the effective US tariff rate (ex-China) will moderate toward 15% by year-end.”
“Nothing is ever permanent when it comes to Trump’s tariffs (and there is a July 9 deadline for reciprocal tariffs and an August deadline for China), but maybe Trump has found a rough tariff equilibrium for now – a 10% universal tariff, 25% product tariffs, and 30% China tariffs,” Piper Sandler head of U.S. policy Andy Laperriere wrote in a Monday note.
Should the morning’s futures gains hold through the close, the S&P 500 would be near positive territory for the year.
MacDailyNews Take: Did you get in under $180 mere weeks ago? On April 8th, not too long ago, Apple sold at a very nice discount of $169.21.
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