Stocks Rise On Tech Tariff Pause As Dollar Weakens: Markets Wrap

Stocks rose after President Donald Trump paused import duties on a range of consumer electronics, boosting sentiment as traders braced for further volatility in markets.

Europe’s Stoxx 600 index rallied more than 2%, while futures for the S&P 500 and the Nasdaq 100 advanced at least 1.2%. Apple Inc. shares jumped as much as 6.4% in premarket trading. The moves came after Trump halted some tech levies, though he indicated a specific tariff will be announced in due course.

The pause on duties on goods from smartphones to laptop computers - most of which are made in China — offers an interim reprieve for markets ravaged by Trump’s flip-flops on trade policy. Volatility shows little signs of easing as Trump tries to rewrite global trade rules that he says aren’t in favor of the US.

“Consumer electronics is one of the largest portions of total imports from China to the US and will ease considerably the impact on companies like Apple,” said Derek Halpenny at MUFG. “But this will hardly help restore investor confidence much and the angst in the markets last week over confidence in the US Treasury bond market and the dollar is likely to continue.”

The Bloomberg Dollar Spot index fell for a fifth day, touching the lowest levels since October, on concern that the confusion around the Trump administration’s tariff policy will drive traders away from US assets. Gold, a traditional haven, hit a record. Treasury yields moved lower, along with those on German and UK bonds.

The late-Friday reprieve — exempting a range of popular electronics from the 145% tariffs on China and a 10% flat rate around the globe — is temporary and a part of the longstanding plan to apply a different, specific levy to the sector, the White House said. Still, a pause in the duties indicates a willingness by Trump to compromise on a deal, according to some analysts.

“The good news from last week is that Trump has a pain threshold and equity markets can impose some constraints around his policies,” said Aneeka Gupta, head of macroeconomic research at Wisdom Tree UK Ltd. “This is likely to become more apparent in the second half of the year, forcing Trump to back down on further tariffs. We are still early in the cycle, there is long way to go with the tariff battle.”

While the greenback struggled, yen optimism is spreading among hedge funds and asset managers as US tariffs drive haven demand at a time when traders are reassessing the Bank of Japan’s interest rate hike path. The yen appreciated as much as 0.9% to levels last seen in September.

Meanwhile, the euro is emerging as a prime beneficiary of greenback weakness as investors reassess the dollar’s role in the global financial system. Europe’s common currency gained 0.3% on Monday, adding to its fastest rally in a decade and a half.

“Some people believe that rule of law is being degraded in the US and your investment is not that safe in the US,” said Michael Kelly, head of global multi asset at PineBridge Investments. “That could over the long term temper the willingness to invest in the US.”

Tariffs also threaten to curb companies’ profit growth, with Morgan Stanley and Citigroup Inc. reducing their estimates for 2025 earnings, joining other Wall Street banks issuing similar warnings.

Citi’s head of US equity strategy, Scott Chronert, lowered his 2025 prediction for the S&P 500 to 5,800, from 6,500, predicated on earnings of $255 a share for companies in the index, down from a previous $270 projection. At Morgan Stanley, Mike Wilson cut his 2025 earnings-per-share forecast to $257 from $271.

“The 90-day pause on reciprocal tariffs and further concessions over the weekend lessen the near-term probability of a recession, but uncertainty remains high,” said Wilson.

Elsewhere in commodities, oil steadied as traders weighed the latest US moves. Goldman Sachs Group Inc. said the global oil market faces “large surpluses” this year and next as the trade war weighs on demand.

“Extreme risk levels have fallen, but there is still no visibility on the end situation, and there is a risk that the twists and turns as countries try to negotiate will mean no end to volatility,” said Benjamin Melman, global chief investment officer at Edmond de Rothschild AM.

Some of the main moves in markets: 

Stocks

• The Stoxx Europe 600 rose 2.1% as of 10:35 a.m. London time

• S&P 500 futures rose 1.2%

• Nasdaq 100 futures rose 1.4%

• Futures on the Dow Jones Industrial Average rose 0.8%

• The MSCI Asia Pacific Index rose 1.5%

• The MSCI Emerging Markets Index rose 1.2%

Currencies

• The Bloomberg Dollar Spot Index fell 0.4%

• The euro rose 0.3% to $1.1394

• The Japanese yen rose 0.4% to 142.94 per dollar

• The offshore yuan fell 0.3% to 7.3109 per dollar

• The British pound rose 0.7% to $1.3181

Cryptocurrencies

• Bitcoin rose 1.2% to $84,458.12

• Ether rose 2.7% to $1,633.12

Bonds

• The yield on 10-year Treasuries declined four basis points to 4.45%

• Germany’s 10-year yield declined three basis points to 2.54%

• Britain’s 10-year yield declined eight basis points to 4.68%

Commodities

• Brent crude rose 0.5% to $65.11 a barrel

• Spot gold fell 0.4% to $3,223.76 an ounce