- U.S. and European stocks surge on temporary U.S. tariff relief for electronics
- Tech and pharma sectors lead gains; Novo Nordisk jumps 4%
- Trump’s volatile tariff policy continues to stir global market reactions
Markets saw a sharp rebound Monday morning after the U.S. announced temporary exemptions on certain tech products from its steep new tariffs.
European stocks followed suit, with the Stoxx 600 gaining over 2%, led by oil, gas, and banking sectors. Novo Nordisk climbed nearly 4% after Pfizer scrapped its rival weight-loss pill due to safety issues.
Tech and Pharma Drive Global Stock Surge Amid Tariff Relief
A weekend announcement from the Trump administration offered markets a breather: temporary tariff exemptions on a range of electronic goods. With smartphones, PCs, and key components spared — at least for now — futures for the S&P 500 and Nasdaq spiked. This signaled investor optimism returning to tech.
The exemptions cover 20 product categories and come amid intense market pressure and confusion over trade policy direction. While a 20% tariff on Chinese goods still holds, this pause in enforcement gave investors hope. They believe broader negotiations could follow.
Europe mirrored the optimism, with all sectors in the green. The Stoxx 600 jumped more than 2%, buoyed by tech, oil and gas, and banking gains. Oil stocks rose 3.7% despite bearish oil price forecasts for 2025, signaling confidence in the broader energy sector rebound.
In pharma, Novo Nordisk outshone peers, gaining nearly 4% after Pfizer halted its development of a competing daily weight loss drug. This was due to a liver injury case. The move gives Novo more space to dominate the rapidly growing weight-loss drug market. This has been a key driver of its recent investor enthusiasm.
While the tariff reprieve may only be temporary, it’s provided a much-needed dose of optimism across global markets. This is particularly true in tech and pharmaceuticals.
“Markets hate uncertainty more than bad news.” — This quote perfectly captures the recent reaction, as even a temporary reprieve from steep tariffs sent stocks soaring, showing how clarity — even short-lived — can lift investor sentiment.
