Key Points
-
The stock market is up due to electronics being exempted from China tariffs.
-
This measure is reportedly temporary, but many expect it to be a stepping stone for future negotiations with China.
-
The market-wide gains are still modest and may reverse.
-
Your future is too important to leave to chance. See if you’re on track for retirement by taking this simple quiz and matching with a fiduciary financial advisor serving your area. It only takes a moment, and is totally free. Click here to begin. (sponsor)
The stock market is climbing today, with companies gaining across the board as President Donald Trump has exempted electronics from the steep tariffs he imposed earlier on China. Many thought this was the start of the administration starting to pull back tariffs, but that does not seem to be the case as Trump denied tariff exemptions. Commerce Secretary Howard Lutnick also said that this is just a temporary measure before more focused tariffs take effect later.
The market is bullish on the news regardless, as many see this as the first step to eventually reaching an agreement with China and mutually loosening tariffs. Almost all major companies derive some revenue from China or have manufacturing exposure, so any relief from China-related tariffs is seen as a positive thing for the market as a whole.
Here’s a market update as of 11:30 A.M (ET) today.
- The S&P 500 is up 42.43 points, or 0.79%.
- The Nasdaq Composite is up 130.74 points, or 0.78%.
- The Dow Jones Industrial Average is up 255.34 points, or 0.63%.
Market-Wide Relief Rally
Most Magnificent Seven stocks and major companies are up so far this morning. Apple (NASDAQ: AAPL) has gained 3.6% as of writing. The company’s iPhones were used as a benchmark for how tariffs were going to impact the average consumer, as most of them are made in China. In fact, Howard Lutnick himself used it as an example when he talked about “the army of millions and millions of human beings screwing in little screws to make iPhones.”
However, Wall Street wasn’t very bullish on that prospect since American-made iPhones would likely make them well out of reach for the average consumer, and the stock tanked. But now that electronics have been “temporarily” exempted, this stock is roaring back.
- Alphabet (NASDAQ: GOOG, GOOGL) is up 2.5%, and NVIDIA (NASDAQ: NVDA) is up 1%. Both companies are investing in an AI startup called Safe Superintelligence at a $32 billion valuation.
- Palantir (NASDAQ: PLTR) is the biggest winner among big-cap stocks, with a 7.5% gain as it landed a $100 million army AI contract.
- Eli Lilly (NYSE: LLY) is up 2.7%.
- Meta Platforms (NASDAQ: META) is down as it faces an antitrust lawsuit that could force it to break off Instagram.
Notable Gainers Today
- Webull Corporation (NASDAQ: BULL) is up 230% as it sees a growth spurt.
- USA Rare Earth (NASDAQ: USAR) is up 42%, as analysts see it as a hedge against Chinese restrictions on rare earth exports to the U.S.
- Metsera (NASDAQ: MTSR) is up 33% as it recovers from a 50%-plus selloff.
- MP Materials (NYSE: MP) is up 24% due to reports of President Donald Trump drafting an executive order that would allow for the stockpiling of metals in the Pacific Ocean.
- TMC the metals company (NASDAQ: TMC) is up 28% for the same reason.
Notable Losers Today
No big-name losers today due to market-wide optimism and a general lack of bad news.
- Ironwood Pharmaceuticals (NASDAQ: IRWD) is down 33% as the FDA requires an additional trial for SBS drug approval.
- Hyatt Hotels (NYSE:H) is down 3% after being downgraded by Goldman Sachs.
- UnitedHealth (NYSE: UNH) is down 2.4%. It is seen as a tariff-proof stock that defensive investors pile into when tariff panic kicks in. Today, the tariff-related risk sentiment is not so bad.
The image featured at the top of this post is ©Greg Bowker - Pool/Getty Images.