Shares of major technology companies, particularly Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), experienced significant gains on Monday as investors reacted positively to the Trump administration's decision to temporarily exempt certain tech products from reciprocal tariffs.
The exemptions, announced late Friday by US Customs and Border Protection, cover a wide range of consumer electronics, networking equipment, and computing products, including GPUs and servers.
The move provided a boost to the "Magnificent Seven" stocks, with Apple leading the charge.
According to Citi analyst Atif Malik, the exemptions encompass nearly all of Apple's product line, including smartphones, personal computers, tablets, smartwatches, and other accessories.
This positive news sent Apple's stock soaring by as much as 6.3% in premarket trading.
Nvidia also saw a notable increase, with its stock jumping up to 3%.
The tariff relief applies to servers equipped with the AI chipmaker's GPUs imported from Taiwan and China.
Bernstein analyst Stacy Rasgon noted that while many Nvidia servers shipped from Mexico to the US were already exempt under the USMCA, the new exemptions provide further clarity, especially for products coming from Taiwan and China.
The temporary exemptions cover a substantial amount of global imports, estimated at $340 billion.
China accounts for a significant portion of this, with approximately $100 billion worth of excluded products originating from the country.
Other tech giants also benefited from the news, with Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), and Google (NASDAQ:GOOG) all gaining around 1% in early Monday trading.
Nvidia competitor Advanced Micro Devices (NASDAQ:AMD) saw an even larger jump, climbing 3.9%, while fellow chipmakers Broadcom (NASDAQ:AVGO) and Qualcomm (NASDAQ:QCOM) both rose by as much as 2%.