The U.S. Stock Market Starts the Week Higher
The U.S. stock market started the week higher, boosted by a partial truce in tariffs on technology products. S&P 500 futures rose 1.6% today, while Nasdaq futures, which are heavily weighted by technology companies, rose 1.9%. The Dow Jones index rose 1%, surpassing 400 points in Monday morning trading.
Contradictory Statements from the U.S. Government
The positive move comes after a weekend marked by contradictory statements from the U.S. government on its tariff policy. President Donald Trump and his top aides delivered conflicting messages on the scope and application of trade tariffs, particularly with regard to consumer electronics.
Temporary Suspension of Tariffs
On Saturday, major companies in the sector, including Apple and Nvidia, were given a temporary suspension of tariffs on smartphones, computers and other electronics. However, uncertainty returned on Sunday. U.S. Commerce Secretary Howard Lutnick said those items would soon be subject to a new round of levies, which would be different from the tariffs applied to specific countries.
Trump’s Reinforcement of Tariff Policy
Trump reinforced the message in a social media post, saying there are “no exceptions” and that his team would look at “semiconductors and THE ENTIRE ELECTRONICS SUPPLY CHAIN” as part of future national security investigations.
Market Reaction to Tariff Delay
Despite the confusion, the market reacted with optimism to the possible delay in the application of the tariffs. Apple shares, for example, rose in premarket trading, as the company’s products would be, at least temporarily, exempt from the new tariffs.
China’s Response to U.S. Tariff Increases
Meanwhile, China has responded forcefully to the latest U.S. moves. On Friday, Beijing increased its tariffs on American goods to 84 percent from 125 percent, in response to an increase in U.S. tariffs on Chinese goods to 145 percent. The new levies came into effect on Saturday, further deepening the trade standoff between the world’s two largest economies.
Temporary Tariff Pause and Market Gains
Even with trade tensions, the stock market found a brief reprieve, with the temporary tariff pause serving as a catalyst for Monday’s gains.
Bitcoin Price Update
At the time of publication, the price of Bitcoin was quoted at US$84,813.86, up 1% in the last 24 hours.