[UNITED STATES] U.S. stock futures showed modest gains on Monday morning, buoyed by the Trump administration's decision to temporarily exempt key technology products from impending tariffs. While the move has sparked optimism in the tech sector, analysts caution that the relief may be short-lived amid ongoing trade uncertainties.
Tech Sector Reacts to Tariff Exemptions
Dow Jones futures rose by 0.4%, S&P 500 futures gained 0.9%, and Nasdaq-100 futures climbed 1.2% as investors responded positively to the temporary suspension of tariffs on consumer electronics. The exemptions, which include smartphones, laptops, and semiconductor components, were announced following a Customs and Border Protection notice. This move alleviated pressure on tech companies that had been facing up to 145% tariffs on Chinese imports.
Asian tech stocks also experienced significant gains, with Apple suppliers Foxconn and LG Innotek rising 7.1% and over 8%, respectively, and PC maker Lenovo increasing 8.6% in Hong Kong.
Mixed Signals from U.S. Officials
Despite the temporary relief, mixed messages from U.S. officials have introduced an element of uncertainty. President Trump clarified that the exemptions are part of a broader national security review and emphasized that the products remain subject to existing "Fentanyl Tariffs." Commerce Secretary Howard Lutnick reinforced that the policy is temporary and sector-specific tariffs on electronics and semiconductors will be implemented soon. These conflicting statements have left investors cautious, as the market remains sensitive to political and economic developments.
Market Performance Amid Tariff Uncertainty
The recent tariff pause led to significant gains in major indices, with the Nasdaq jumping 7.3%—its best-performing day in years. However, analysts caution that the market lacks a confirmed uptrend and remains vulnerable to policy changes. Key earnings reports from companies such as Netflix, Taiwan Semiconductor, UnitedHealth, and Goldman Sachs are expected this week, which may influence market direction.
Bond markets have shown signs of stress, with the largest weekly surges in Treasury yields in decades. Additionally, the U.S. dollar weakened sharply against global currencies, raising concerns about investor confidence in U.S. assets.
Looking Ahead
While the temporary tariff exemptions have provided a boost to the tech sector, the overall market remains on edge. Investors are advised to stay cautious, monitor policy developments closely, and be prepared for potential market volatility as the situation evolves
WhatsApp
Instagram
Threads
