Apple Leads Market Rebound After Tariff Relief
Tech stocks surge as White House grants temporary tariff exemption, but uncertainty keeps markets on edge.
Editorial Team (ET)May 9, 2025
Wall Street took a deep breath and surged forward as the Trump administration temporarily rolled back tariffs on electronics imported from China, offering a much-needed lifeline to tech juggernauts like Apple and Nvidia. Monday’s rally was swift and decisive. The S&P 500 soared 49 points to 5,413. The Dow Jones Industrial Average added 301 points, and the Nasdaq—a tech-heavy bellwether—jumped 1.3%. For a market battered by months of tariff tension and geopolitical jitters, the tariff reprieve signaled a momentary sigh of relief. But make no mistake—investors aren’t unpacking their bags just yet.
The sudden shift in momentum came as the White House exempted key consumer electronics—smartphones, laptops, and tablets—from its latest round of sweeping tariffs on Chinese imports. That single move sent Apple stock flying 4.2% to $206.52, erasing recent losses and rekindling investor optimism that the world’s most valuable public company may avoid a potentially bruising round of price hikes on core products. Nvidia, too, saw gains, up nearly 0.7% in early trading as fears over semiconductor component costs briefly eased.
Yet even as investors celebrated, clouds of uncertainty loomed. President Trump’s administration continued sending mixed signals. On Sunday, Trump walked back any notion of product exemptions, insisting no official deals had been struck. Instead, he teased new tariffs on electronics components, including semiconductors—the backbone of the entire tech ecosystem. The message was clear: this was a pause, not a peace treaty.
Analysts were quick to issue warnings. John Canavan of Oxford Economics pointed out that while the rally reflects optimism, there’s still no consistent roadmap for U.S. trade policy. “The lack of a clear path has added to overall market uncertainty,” Canavan said. “Risk appetite may be temporarily reignited, but it’s fragile. Volatility will continue to shadow the market.” Chris Larkin from E*TRADE echoed those sentiments, calling the rally “reactive rather than resilient,” driven by fleeting headlines instead of foundational strength. “Flexibility from the White House will be key if this rebound is to sustain,” Larkin said, adding that investors remain jittery amid soft economic data and lingering recession fears.
Underpinning all this is the growing confrontation between the world’s two largest economies. Just last week, China ramped up tariffs on U.S. goods from 84% to a staggering 125%. In retaliation, Trump’s blanket tariffs on Chinese imports now sit at 145%. While some countries were offered a 90-day reprieve, Beijing was not among them. The tit-for-tat strategy has sent ripples through global supply chains and shaken investor confidence worldwide.
The exemption for tech giants, while celebrated, may prove to be a Band-Aid over a bullet wound. Apple, with its iPhones and MacBooks primarily assembled in China, faces extreme vulnerability to any future tariff whiplash. If exemptions are pulled or restructured, Apple’s margins—and ultimately consumer prices—could suffer. Nvidia and other semiconductor companies walk a similar tightrope. Their global operations rely on frictionless access to rare components, and any sustained disruption could damage production cycles, delay rollouts, and crush quarterly expectations.
Beyond tech, Monday’s rally spread to adjacent sectors like Chinese tech firms, cruise lines, apparel makers, and financial stocks. Markets are clearly eager for any flicker of relief, even if it’s fleeting. But seasoned investors know not to chase shadows. The White House’s policy whims, combined with China’s aggressive countermoves, mean volatility is here to stay.
What’s particularly frustrating for investors is the policy inconsistency. One day it’s tariffs. The next, a reprieve. Then, new categories of components are suddenly back under review. This kind of whiplash has left portfolio managers scrambling for clarity, while companies try to make long-term plans in an environment where the rules change by tweet.
Still, hope lingers. Some traders are holding onto the belief that the 90-day reprieve could evolve into something more permanent if economic headwinds intensify. With bond markets already flashing warning signs and global indices teetering, the administration may feel pressure to avoid an all-out recession. That said, counting on policy stability from this White House might be wishful thinking.
It’s also worth noting that the latest rebound comes against a broader backdrop of economic fragility. Soft global manufacturing data, sluggish consumer confidence, and signals of weakening job growth all point to a market on edge. In that context, a few positive trading days, even driven by headline-grabbing exemptions, do little to shift the underlying narrative. The fundamentals remain shaky, and the geopolitical risks very real.
So where does that leave us? On the surface, it’s a bounce. Underneath, it’s a balancing act. Investors are trading not on certainty, but on speculation. They’re not reacting to clear fiscal strategy, but to a stream of mixed messages and economic brinkmanship. As it stands, the tech tariff reprieve is less a turning point and more a timeout. How long that timeout lasts—and whether it turns into anything lasting—is anyone’s guess.
Until then, the market remains hostage to headlines. With each passing day, investors must choose between risk and refuge, between momentum and caution. The only thing that seems certain? More turbulence ahead.
Conclusion
The stock market’s rally following temporary tech tariff exemptions is more of a reflex than a recovery. Apple and Nvidia may have dodged a bullet—for now—but with no consistent trade policy from the White House, the relief could be short-lived. Markets are celebrating today’s reprieve, but tomorrow could bring another round of tariffs or another abrupt reversal. As global economic pressure builds and U.S.-China relations remain tense, investors should brace for more volatility ahead.
