Global financial markets kicked off the week with strong gains, driven by a reduction in trade tensions between the United States and China. President Donald Trump announced a temporary exemption from tariffs on certain electronic products, a move welcomed by investors who had been concerned about a possible escalation in the dispute between the world’s two largest economies.
On Wall Street, major indices extended last week’s rally. The S&P 500 rose 1.8% shortly after the opening bell, while the Dow Jones gained 1.3%. The Nasdaq led the way with a 2% jump, fueled by strong performance from tech stocks.
Technology companies, which had been among the most vulnerable to tariffs on Chinese imports, saw significant gains. Apple surged nearly 5.3%, while other firms such as Dell and Super Micro Computer also climbed by around 5%.
Goldman Sachs advanced 1.5% after beating Wall Street expectations on both earnings and revenue for the first quarter. Investors are now awaiting key financial results this week from companies like Bank of America, United Airlines, and Netflix.
China’s Ministry of Commerce described Trump’s move as “a small step” toward trade reciprocity but urged Washington to remove tariffs entirely. Last Friday, China had announced tariff hikes of up to 125% on U.S. goods in response to earlier measures from Trump, stoking fears about the potential global economic fallout of this tit-for-tat escalation.
Despite Trump’s 90-day suspension of some tariffs—excluding China—analysts warn that prolonged trade friction could have widespread repercussions and even trigger a global recession.
European stock markets also rallied, posting gains around 2% amid growing focus on negotiations with Washington. With the euro up 0.21% at $1.137, Frankfurt led the pack with a 2.21% rise, followed by Milan (2.14%), Paris (1.91%), Madrid (1.88%), and London (1.81%). The Euro Stoxx 50 climbed 1.98%.
In Europe, attention is centered on EU Trade Commissioner Maros Sefcovic’s visit to Washington, where he is set to negotiate tariffs and attempt to freeze countermeasures previously announced by Brussels in response to U.S. duties on steel and aluminum. The visit comes after Trump lowered global tariffs from 20% to 10% for 90 days and the EU agreed to suspend its retaliatory 25% tariffs for the same period.
Adding to the market momentum, business confidence in Europe improved by 0.1% in the second quarter of 2025 compared to the first, marking two consecutive quarters of growth despite the ongoing trade uncertainty.
In Asia, markets responded positively as well. Hong Kong’s Hang Seng jumped 2.4% to 21,417.40, while the Shanghai Composite Index rose 0.8% to 3,262.81, buoyed by data showing China’s exports increased 12.4% year-on-year in March. The surge was attributed to companies rushing to ship goods before new U.S. tariffs kicked in.
Japan’s Nikkei 225 rose 1.2% to 33,982.36, and South Korea’s Kospi added 1% to 2,455.89. Asian tech stocks also rallied: Tokyo Electron gained 1.4%, Advantest jumped 4.9%, and Samsung Electronics advanced 1.8%. The only market in the red was Taiwan, where the Taiex slipped 0.1% amid concerns over Trump’s announcement of upcoming chip-related tariffs expected “next week.”
In the bond market, a sense of relief also prevailed. The yield on the 10-year U.S. Treasury fell to 4.44% early Monday, down from 4.58% on Friday and 4.01% a week ago.
In Europe, Germany’s long-term bond yield rose to 2.534%, while Spain’s dropped to 3.245%, with the risk premium at 71 basis points.
Oil prices climbed as well: Brent crude, the European benchmark, rose 0.5% to $65.13, while West Texas Intermediate (WTI) edged up 0.33% to $61.83.
Bitcoin joined the rally, rising 1.21% to $84,489.3.
Investors are now eyeing the upcoming European Central Bank meeting on Wednesday and Thursday, where analysts expect a potential 0.25% rate cut, as well as the latest OPEC monthly report, due later today in the U.S.
