Tech Stocks Surge Amid US-China Trade Truce

Recent developments in the US-China trade negotiations have sparked a rally among major tech stocks, notably Tesla and Amazon, which saw significant gains of 7.9% and 7.7% respectively. The agreement to temporarily reduce tariffs on Chinese goods is particularly advantageous for companies like Apple and Nvidia that heavily rely on Chinese supply chains.

Analysts describe this truce as a 'dream scenario' for these tech giants, alleviating concerns over supply chain disruptions. The Nasdaq 100 has rebounded, erasing previous losses as investor sentiment improves.

Meanwhile, the reduction of tariffs on small-value parcels from China is expected to boost e-commerce entities like Amazon and Meta Platforms. Although uncertainty remains regarding future trade policies, the recent agreement provides a much-needed respite for the market, allowing companies to focus on growth and innovation amidst ongoing geopolitical challenges.