Semiconductor Surge Lifts Wall Street as Tariff Worries Ease

Wall Street experienced a notable surge, reaching a one-week high driven by semiconductor stock rallies and speculation of a moderate stance on tariffs by the Trump administration. Microsoft investment and Foxconn's revenue reports further boosted the semiconductor sector. Investors are keenly observing upcoming economic data and Federal Reserve policy changes.

Wall Street's main indexes climbed to their highest levels in over a week on Monday, driven by a rally in semiconductor stocks and reports suggesting the Trump administration may adopt a less severe tariff approach than initially expected. By early afternoon, the Dow Jones rose 67.29 points to 42,799.42, the S&P 500 climbed 41.70 points to 5,984.17, and the Nasdaq gained 243.81 points to 19,865.49.

Automakers saw positive movement, with Ford and General Motors recording gains after reports of potential moderation in tariff plans. However, President-elect Trump later contradicted these claims, maintaining his firm stance on tariffs, despite some analysts suspecting a less drastic approach.

The Russell 2000 index, reflecting small-cap company performance, increased by 0.78%. Semiconductor stocks particularly benefited from Microsoft's $80 billion AI investment and Foxconn's robust fourth-quarter revenue. The Philadelphia SE Semiconductor Index rose 3.45%, reaching a two-month high.

(With inputs from agencies.)