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Tech stocks were enjoying a market-leading rebound Monday morning in the wake of the U.S.-China trade truce. The Nasdaq soared 3.4% shortly after markets opened, outpacing broader gains across other major indexes as investors rushed back into names that had been punished by weeks of trade-related doom-and-gloom.
Apple (AAPL) stock helped lead the gains, rising almost 5%.
Bite goes back into the Apple with a $200 billion market cap gain
A single-day 7% rally in a company of Apple’s size, adding about $150 billion in market value, is the kind of move that tilts entire indexes.
Apple alone makes up about 8.5% of the Nasdaq 100 and 7% of the S&P 500, meaning its surge doesn’t just lift tech — it helps carry the entire market. Even in the Dow Jones Industrial Average, where components are price-weighted, the move landed with noticeable force.
The buying spree looked extended across the so-called Magnificent 7 tech stocks. Nvidia (NVDA) stock rose 3.9%, Meta (META) surged 5.3%, Google parent Alphabet (GOOGL) climbed 2.5%, Tesla (TSLA) jumped more than 5%, and Microsoft (MSFT) was up slightly. All together, those names account for more than 40% of the Nasdaq 100, making Monday’s tech rally not just a bounce, but what looks to be a full-blown relaunch, even as some analysts question what the point of all the trade upheaval was to begin with.
What’s powering the tech-led rally
Monday’s premarket relaunch signals a sharp reversal from the anxiety that had gripped the sector since President Donald Trump’s “Liberation Day,” when sweeping tariffs scrambled supply chains and weighed on sales outlooks. Tariff-related uncertainty became a fixture of earnings conference calls as CEOs slashed guidance and investors sold off even favored names. More recently, confidence has drifted back in, lifting the S&P 500 to almost two weeks of gains as Trump softened and walked back his tariff rhetoric.
With Washington and Beijing now agreeing to slash most reciprocal tariffs for 90 days, attention is snapping back to tech’s long-term story. Apple, in particular, is being lifted by a new Wall Street Journal (NWSA) report that it’s planning a slate of iPhone upgrades which will justify higher prices— while taking much care not to link expected those price hikes to tariffs, given the White House’s tendency to punish, or at least attempt to punish, those who don’t fall in line.
CEO Tim Cook had already moved to protect Apple’s supply chain, building up inventory in March and shifting iPhone production for the U.S. to India. He recently said a majority of iPhones shipped to the U.S. this quarter will come from Indian factories.
Wedbush sees a ‘dream scenario’ for tech
In a note released early Monday, analysts at Wedbush Securities described the truce as a “dream scenario” for stocks, particularly tech stocks. While “supply chain and economic damage has been done,” the analysts said, they expect that, going forward, “the Street will instead focus on normalized growth post this volatile six week period.” And they said a near-term recession is likely off the table now.
The memo concluded: “This is very bullish news for the tech trade as the supply chain concerns will now be significantly reduced... although there is more wood to chop around chip restrictions (H20/Nvidia) and other issues in the AI trade that need to be addressed as part of a broader deal with US/China. This morning is a huge win for the bulls and a best case scenario post this weekend in our view.”