Dow Jumps 400+ Points After Trump Moves Smartphones, Computers To Different ‘Tariff Bucket’

United States stocks opened on a high note on Monday after President Donald Trump temporarily exempted American tech giants from some of his new reciprocal tariffs, sending shares of Apple and Dell soaring while providing relief to a market that had been rocked by tariff uncertainty.

The three major indexes all rose compared to last week, with the Dow Jones Industrial Average adding 421 points (1%), the S&P 500 rising 1.1%, and the Nasdaq Composite gaining 1%, according to CNBC.

At their midday peaks, the Dow was up more than 500 points, and the Nasdaq was up 2.5% during the volatile trading session.

Investors welcomed the exemption of smartphones, computers, and semiconductor components from Trump’s new “reciprocal” tariffs, based on U.S. Customs and Border Protection guidance issued late Friday.

Apple shares rose 3% following the news at the opening bell, while Dell surged more than 4% as tech companies received immediate relief from the threatened tariffs.

“The market believes that the administration is probably in some sort of retreat from their most-extreme tariff proposal,” said Jed Ellerbroek, portfolio manager at Argent Capital Management. “That’s incremental good news.”

The market is coming off one of its most volatile trading weeks on record, with the CBOE Volatility Index spiking above 50 on Thursday,

“Smartphones, chips being excluded is a game changer scenario when it comes to China tariffs,” said Dan Ives, global head of technology research at Wedbush Securities. “I think ultimately Big Tech CEOs spoke loudly, and the White House had to understand and listen to the situation that this would have been Armageddon for big tech if were implemented.”

National Economic Council Director Kevin Hassett provided the market further assurances during a Fox Business interview, noting that “more than 10” countries were already seeking “amazing” trade agreements to avoid the new levies.

Trump’s “Liberation Day” tariffs aim to, according to the White House, “strengthen the international economic position of the United States and protect American workers” and will remain in place until “President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated.”

However, Trump clarified on Truth Social that these “exempted” products remain “subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket,'” suggesting the exemptions might not be permanent, and reigning in the optimism of some investors.

Despite the recent tech stock rally, many on Wall Street remain cautious about potential volatility in the coming weeks as further details of the administration’s trade policies emerge, particularly regarding permanent tariff structures and potential exemptions for other goods and sectors.