Investors around the world seized on President Trump’s temporary exemption for tech products amid the latest wave of tariffs. Wall Street and European markets booked gains, with Asia and Australia following suit.
US investors cheer tech product exclusion from Trump’s tariffs
Wall Street rose as investors welcomed a temporary exemption for tech products from US tariffs. The DOW and NASDAQ each climbed +1.2%, while the S&P 500 added +1.3%. However, the exempted products are still expected to face new duties within two months, and Trump’s semiconductor tax announcement is due later this week. Apple rose +2.2% on the news, while other megacaps Amazon and Nvidia fell -1.9% and -0.8% respectively. Goldman Sachs gained +1.0% after reporting better-than-expected Q1 profit. In health care, Eli Lilly rose +1.4% after Pfizer scrapped development of an experimental daily weight-loss pill due to a liver injury in one patient. In bond markets, the US two-year Treasury yield fell -11 bps to 3.849%, while the 10-year dropped -12 bps to 4.378%.
European investors buy into tech exemption
The Trump administration’s temporary exemption for tech products sparked a broad rally across European markets. The pan-European STOXX 600 rose +2.7%, while London’s FTSE 100 climbed +2.1%. Smartphones, laptops, and other electronics will be temporarily spared from the sweeping 145% tariffs on China and other nations, as well as the standard 10% baseline duties. In the healthcare sector, Novo Nordisk jumped +3.7%, echoing Eli Lilly’s gains after Pfizer (+0.8%) announced it would discontinue development of its weight-loss pill. After the bell, LVMH reported a -3% decline in first-quarter sales.
Positive sentiment in Australasian markets sees all benchmarks into the green
The ASX 200 rose +1.2%, tracking Wall Street’s Friday gains and amid ongoing uncertainty around US tariff policy. Neuren Pharmaceuticals surged +21.1% after receiving FDA approval to proceed with phase 3 trials for its treatment of Phelan-McDermid syndrome. Ansell fell -2.3% after an investment bank cut its target price. Analysts argued that tariffs would weigh on US and global economic growth, reducing demand for personal protective equipment. In New Zealand, the NZX 50 added +0.7%. Asian markets also moved higher. Hong Kong’s Hang Seng led the gains, rising +2.4%, followed by Japan’s Nikkei 225 and Korea’s Kospi, which rose +1.2% and +1.0% respectively.
WTI Crude and Iron Ore up, Gold down
WTI Crude added +0.1% to US$61.55/bbl, Gold fell -0.9% to US$3,208.59/oz, Iron Ore gained +0.1% to US$99.95/MT.
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