Tech Surge Amid Trade Tensions: Markets React to Tariff Exemptions

U.S. markets showed resilience as tech shares rose following the exemption of smartphones and computers from tariffs, despite President Trump's ongoing trade war rhetoric. However, uncertainty continues to loom over global markets, with fluctuating oil prices and investor concerns about U.S. economic stability.

U.S. markets saw a rise in tech shares Monday as investors reacted to exemptions from tariffs on smartphones and computers, despite President Trump's continued focus on trade levies. The Dow Jones slightly climbed, with Apple leading gains in the tech sector. However, instability persists amid fluctuating dollar and oil prices.

Technology tariff exemptions provided temporary relief for U.S. manufacturers but left bond markets and the dollar largely unchanged, reflecting ongoing investor skepticism. Strategists predict continued market volatility until there is a clearer economic recovery path. Europe and Asia also showed relative optimism, catching up with Wall Street's earlier bounce.

The global economic landscape remains uncertain, with critical earnings reports due and economic indicators like U.S. retail sales and China's GDP on the horizon. Analysts warn of capital outflow from U.S. assets as investors reassess the appeal of dollar investments amid erratic trade policies.

(With inputs from agencies.)