U.S. markets were soaring on Monday morning following the G-20 Summit meeting held over the past weekend. During the summit, U.S. President Donald Trump and Chinese President Xi Jinping met to discuss trade matters.
Trump said the U.S. would maintain its current tariffs, but hold off on the news one. Trump also mentioned that he would ease up on the ban on Huawei, allowing U.S. companies to sell their products to the Chinese tech giant.
The Dow Jones Industrial Average surged by 255.55 points or 0.96%. The S&P 500 rose by 30.88 points or 1.05%, while the Nasdaq Composite increased by 115.73 points or 1.45%.
“I had a great meeting with President Xi of China yesterday, far better than expected. I agreed not to increase the already existing Tariffs that we charge China while we continue to negotiate.” tweeted Trump on Saturday.
“Importantly, we have opened up negotiations again with China as our relationship with them continues to be a very good one. The quality of the transaction is far more important to me than speed. I am in no hurry, but things look very good! There will be no reduction in the Tariffs currently being charged to China.” Trump concluded.
Tech stocks were primarily in focus on Monday, specifically chip makers. Apple (NASDAQ: AAPL) shares were trading 2.79% shortly after the opening bell. Meanwhile, Nvidia (NASDAQ: NVDA) shares edged higher by 3.23%, Advanced Micro Devices (NASDAQ: AMD) shares rose by 3.6%, and Micron (NASDAQ: MU) shares surged by 5.7%.
While the chip sector was predominantly in focus on Monday, other tech stocks witnessed a stronger open as well. Alphabet (NASDAQ: GOOG) rose by 1.9%, Amazon (NASDAQ: AMZN) grew by 1.5%, Netflix (NASDAQ: NFLX) jumped by 1.66%, and Tesla shares increased by 3%.
The Commerce Department is working on an exporting license for Huawei to evaluate which products will be allowed to be sold, according to The Wall Street Journal.
Stephen Innes, Managing Partner at Vanguard Markets wrote in a Sunday note that, “After the markets were stuck in trade-war limbo for the better part of two months, investors will breathe a massive, but exhausted, sigh of relief that both the U.S.-China opted to push the reset button and restart trade negotiation[s].”