By Dean Seal and Denny Jacob
Shares of semiconductor and chip companies are moving higher after the U.S. and China agreed to dramatically scale back sky-high tariffs on each other's goods.
Shares of Nvidia were up 3.9% at $121.15, and Taiwan Semiconductor Manufacturing shares rose 4.8% to $184.97. Shares of Qualcomm were up 3.6% at $150.36, while shares of Broadcom were up 4.9% at $218.45.
The semiconductor sector has been under pressure from the U.S.-China trade war kicked off by the Trump administration this year. While President Trump didn't issue direct tariffs on chipmakers, most chips are exported to China or other countries where they are assembled into servers and computer equipment that were expected to face tariffs when shipped to the U.S.
Chip companies saw similar gains in early trading Monday. Marvell Technology rose 6.4% to $63.48, while Micron Technology jumped 7.6% to $92.39. Advanced Micro Devices rose 5.7% to $108.67, while Super Micro Computer gained 7.9% to $34.52.
After weekend talks in Geneva, the countries said Monday that Trump's "reciprocal" tariff on China would be slashed to 10% from 125% and that the reductions would last for 90 days while negotiations are ongoing.
The agreement came faster than expected and eased tariff levels more than Wall Street had anticipated, sending U.S. stocks higher.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
05-12-25 1004ET
