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- The Nasdaq-100 entered a bull market on Monday as stocks rallied on US-China trade progress.
- The US and China over the weekend agreed to lower tariffs for 90 days.
- Tesla rose 8% and Nvidia jumped 5%, with all other Magnificent Seven names also gaining.
A big U-turn in the trade war over the weekend sent the Nasdaq-100 soaring on Monday, with the tech-heavy index on track to end the session in a bull market.
The Nasdaq soared as much as 4% on Monday, spiking after the US and China announced a breakthrough in negotiations. The early gains pushed the Nasdaq up 21% from its low on April 8, returning the index to levels not seen since late February. A bull market is defined as a 20% rise from the most recent low.
Nasdaq 100
Monday’s big rally was felt across the board, with the S&P 500 and Dow Jones Industrial Average also surging. But market euphoria over tariff relief was particularly visible among megacap tech stocks, with the so-called Magnificent Seven leading the upside.
Here are the moves in the top tech names on Monday morning:
Amazon: +9.6%.
Tesla: +8%.
Meta: +7%.
Apple: +6.5%.
Nvidia: +5%.
Google: 2.86%.
Microsoft: +1.6%.
The announcement over the weekend that US tariffs on China would drop from 145% to 30% for 90 days was welcome news for many Big Tech firms with supply chains or customers in China. Apple has been particularly exposed, with China being its main manufacturing hub and a major market for its devices.
Tech stocks also gained ahead of the tariff truce, with megacap names helping to drive first-quarter earnings growth in recent weeks. Magnificent Seven tech earnings grew 28%, compared with 9% for the rest of the S&P 500, Goldman Sachs said.
Nvidia, the top semiconductor stock at the heart of artificial intelligence trade, is set to report earnings results on May 28. The stock climbed last week on news that the Trump administration would do away with Biden-era chip export restrictions.
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