Stocks rally worldwide after Trump eases some tariffs on electronics, for now

Stocks are rallying worldwide after US President Donald Trump relaxed some of his tariffs, for now at least.

The S&P 500 is 1.5% higher in early trading. It’s coming off a chaotic week where it careened through historic swings as financial markets struggled to catch up with Trump’s moves on tariffs, which investors fear could lead to a recession if not reduced.

The Dow Jones Industrial Average is up 441 points, or 1.1%, as of 9:35 a.m. Eastern time, and the Nasdaq composite is 2% higher.

Apple, Nvidia and other big technology companies lead the way on Wall Street after Trump said he was exempting smartphones, computers and some other electronics from some of his stiff tariffs, which could ultimately more than double prices for US customers of many goods coming from China. Such an exemption should help US importers, which would not have to choose between passing on the higher costs to their customers or taking a hit to their own profits.

Apple climbs 5.3%, Nvidia rises 2.3%, and Dell Technologies jumps 5.9%.

Stock markets in other countries likewise bounce following the cooldown in Trump’s trade war with China, the world’s second-largest economy. Indexes climb 2.4% in France, 2.7% in Germany, 1.2% in Japan and 1% in South Korea.

But the relief may prove fleeting. Trump’s tariff rollout broadly has been full of fits and starts, and officials in his administration said this most recent exemption on electronics is only temporary.