Markets Rise as Tech Stocks Rally on Tariff Reprieve

Markets advance on Tariff Relief and Expectations of Earnings

Global markets rebounded modestly on April 14, 2025, following the temporary reprieve from fresh tariffs by the US administration on major electronics and encouraging corporate earnings.

Tech Stocks Gain on Tariff Exemptions

A massive respite for the tech sector was brought about by President Trump exempting smartphones, laptops, and semiconductors from this latest round of tariffs. Stocks of two of the largest techgiants, namely Apple and Dell, rose 5.3% and 3.5% respectively. Nasdaq Composite rose by 1.3%, with S&P 500 and Dow Jones Industrial Average rising by 1% and 500 points respectively.

Earnings Season Begins with Supportive Earnings Reports

Goldman Sachs reported better-than-expected first quarter earnings, with an EPS of $14.12 and a revenue of $15.06 billion. Its shares rallied 3% upon release. This encouraging performance early in earnings season helped investor sentiment in light of continued market uncertainty.

Commodity and Cryptocurrency Movements

Gold prices remained elevated, trading in excess of $3,200 an ounce, with investors continuing to fret about trade tensions globally and seeking refuge. Bitcoin also advanced, trading over $84,500. Oil futures rose over 1%, and the 10-year Treasury note yield fell to around 4.45%.

Global Markets Reactions

Global markets reacted positively to the wave of optimism sweeping across the U.S. with markets such as the FTSE 100 of Europe and Germany's DAX rising 2.1% and 2.46% respectively. Asia also advanced with Japan's Nikkei 225 rising 1.18% and China's Shanghai Composite rising 0.76%.

Outlook is cautious.

Despite such encouraging news, uncertainty prevails due to temporary exemptions from tariffs, with near-term potential for increased trade tensions. Forecast by economists is a 45% chance of an American recession, and near-term market volatility will have to be expected.