Shares of technology companies and chipmakers rose sharply on Monday, May 12, 2025, after the United States and China agreed to a 90-day suspension of most tariffs imposed earlier in the year, in an attempt to ease tensions in a protracted trade conflict between the world's two largest economies, CNBC reported.
The technology sector has been under pressure in recent months over concerns that tariffs will damage global supply chains. However, the agreement reached signaled to investors that the parties can move to a more constructive dialogue. In the US, chip companies' shares began to rise rapidly. In particular, NVIDIA rose by 4%, AMD and Broadcom by 5%, and Marvell by as much as 7.5%. TSMC's American depositary receipts also rose by 4%.
In Europe, ASML, which supplies equipment for semiconductor manufacturing, rose 4.5%, and Infineon rose even more. Apple shares also rose, more than 7%, even though the company warned that tariffs could cost it $900 million this quarter. Amazon , which imports much of its goods from China, rose more than 8%.
Chinese tech giants Alibaba, JD.com and Baidu also saw significant gains. Analysts believe the deal paves the way for a broader trade deal in 2025. The news was a "huge win for the market" and could be a turning point for the global tech industry, said Wedbush analyst Daniel Ives.