U.S.-China breakthrough sends tech and chip stocks soaring

Global technology and chip stocks rallied on Monday after the U.S. and China agreed to pause most tariffs on each other’s goods.

Global technology and chip stocks rallied on Monday after the U.S. and China agreed to pause most tariffs on each other’s goods.

Technology stocks — such as semiconductor firms and smartphone makers — have been hit hard as trade tensions between the world’s two largest economies threatened to disrupt supply chains and hurt some of the biggest U.S. businesses.

But investors breathed a sigh of relief after talks between the U.S. and China over the weekend yielded a temporary pause in “reciprocal” tariffs.

In the U.S., Nvidia, which still faces a number of restrictions on the chips it is allowed to ship to China, was around 4% higher in premarket trade, while AMD was up 5%. Broadcom was also around 5% higher, along with Qualcomm.

Other companies in the semiconductor supply chain also jumped. Marvell, which last week postponed a previously scheduled investor day due to macroeconomic uncertainty, surged 7.5% in premarket trade.