The stocks known as the Magnificent Seven, which include Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Meta (NASDAQ:META), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT), experienced a rally during premarket trading on Monday. This positive movement comes as the US and China agreed to temporarily lower tariffs on each other’s goods.
The US has decided to reduce its combined 145% levies on most Chinese imports to 30% by May 14. This reduction includes the rate tied to fentanyl. Similarly, China’s 125% duties on US goods will decrease to 10%. This agreement is part of a 90-day cool-off period between the two nations.
Among the Magnificent Seven, Tesla saw a 6.7% increase, while Amazon’s shares rose by 5.9%. Apple, which will trade ex-dividend on Monday, experienced a 4.8% rise. Meta’s shares increased by 4.7%, Nvidia’s by 4.6%, Alphabet’s by 2.6%, and Microsoft’s by 1.9%.
In addition to these individual stock gains, broader market futures also experienced a rise. S&P 500 futures rose by 2.5%, and Nasdaq 100 futures saw a significant jump of 3.4%. This news of tariff reductions and its positive impact on premarket trading signifies a hopeful start to the week for the US stock market.
