The so-called “Magnificent 7” group of major tech stocks saw a dramatic surge in market value, adding a combined $837.5 billion on Monday following a breakthrough between the United States and China to pause most tariffs on each other’s goods. This represented the group’s largest single-day gain since early April and marked a sharp rebound for the tech sector, which has been weighed down by ongoing trade tensions and supply chain uncertainty.
Technology companies, particularly semiconductor firms and smartphone manufacturers, had been among the hardest hit amid escalating tariffs and geopolitical friction between the world’s two largest economies. However, investor sentiment quickly reversed as the weekend agreement signaled a de-escalation and temporary stability, leading to broad market gains.
Among the U.S. chipmakers, Nvidia’s shares rose approximately 5%, despite still facing certain export restrictions to China. AMD also climbed about 5%, while Broadcom saw a 6% jump. Qualcomm was up 5%, reflecting broader optimism across the sector. Other companies embedded in the chip supply chain performed strongly as well. Marvell Technology surged 8%, while Taiwan Semiconductor Manufacturing Co.’s U.S.-listed shares rose 6%. TSMC’s Taiwan-listed shares closed before the tariff news, so they did not reflect the same gains.
In Europe, semiconductor equipment supplier ASML rallied 6%, buoyed by expectations of revived global chip demand. Infineon Technologies also posted strong gains as optimism spread across international markets.
While semiconductors and some consumer electronics had recently been exempted from new tariffs, the temporary nature of that exemption has kept uncertainty alive. The agreement over the weekend provided some clarity, if only in the short term, allowing markets to breathe a collective sigh of relief.
Big tech companies with high exposure to China, including Apple and Amazon, also posted solid gains. Apple, which manufactures about 90% of its iPhones in China and recently warned that tariffs could add $900 million to its quarterly costs, saw its shares rise about 6%. Amazon jumped 8%, as many of its third-party sellers source products from China and would be impacted by increased trade costs.
Chinese tech companies listed in the U.S., such as Alibaba, JD.com, and Baidu, also rallied in response to the pause in tariffs.
Analysts believe the tariff truce may pave the way for a broader trade deal, potentially setting the stage for tech stocks to reach new highs in 2025.
READ MORE: