Today’s Complete Market CoverageMajor Indexes Rally on Tariff Exemptions
The stock market is showing strong gains today, Monday, April 14, 2025, as investors react positively to President Donald Trump’s decision to exempt smartphones, computers, and semiconductor components from his recently announced tariffs. As of midday trading, the S&P 500 has gained 1.41%, while the tech-heavy Nasdaq Composite has surged 1.86% higher. The Dow Jones Industrial Average is also performing well, climbing 0.91% or approximately 367 points.
This rally comes after a volatile previous week that saw wild swings in the market amid uncertainty surrounding the Trump administration’s tariff policies. Despite today’s gains, all three major indexes remain down since the announcement of the “reciprocal tariffs” earlier this month, with the S&P 500 still down 5.4%, the Nasdaq Composite down 5%, and the Dow Jones Industrial Average down 4.8% from their pre-announcement levels.
Tech Stocks Lead the Way on Tariff Exemptions
Technology stocks are leading today’s market rally after the U.S. Customs and Border Protection issued guidance late Friday exempting smartphones, laptops, hard drives, flat-panel monitors, and certain semiconductor components from Trump’s new tariff regime. This move has particularly benefited Apple (AAPL) and Nvidia (NVDA), whose shares have surged in early trading.
Apple stock jumped as much as 8% in after-hours trading following the announcement and remains significantly higher today as investors celebrate what Wedbush Securities analyst Dan Ives called a “dream scenario” for tech investors. The exemption is especially crucial for Apple, which manufactures over 70% of its iPhones in China.
Similarly, Nvidia and other semiconductor companies are seeing strong gains as the exemption includes vital machines used to make semiconductors. The entire tech sector is breathing a sigh of relief as these exemptions temporarily protect their complex global supply chains from disruption.
However, some uncertainty remains as Commerce Secretary Howard Lutnick indicated that the reprieve might only last 90 days, with the administration planning to implement “special focus-type” tariffs on the semiconductor sector in the future.
Earnings Season Kicks Into High Gear
Today marks the beginning of a crucial earnings week, with Goldman Sachs (GS) reporting first-quarter results before the opening bell. Wall Street expects earnings per share of $12.35 and revenue of $14.81 billion.
Other major companies reporting this week include:
– Monday: LVMH and Goldman Sachs
– Tuesday: Johnson & Johnson (JNJ), Bank of America (BAC), and Citigroup (C)
– Wednesday: ASML, Abbott (ABT), and Progressive (PGR)
– Thursday: Taiwan Semiconductor (TSM), China Unicom, UnitedHealth (UNH), Netflix (NFLX), American Express (AXP), and Blackstone (BX)
AstroNova (ALOT) will also report its fourth-quarter and full-year fiscal 2025 financial results today before the Nasdaq opening.
Key Economic Data and Events This Week
Investors will be closely watching several important economic releases this week that could impact market sentiment:
– Tuesday: UK Unemployment Rate (February), Germany ZEW Economic Sentiment Index (April), and US Import Prices (March)
– Wednesday: China GDP Growth Rate (Q1), China Industrial Production (March), China Retail Sales (March), UK Inflation Rate (March), US Retail Sales (March), and Bank of Canada Interest Rate Decision
– Thursday: Japan Balance of Trade (March), Australia Unemployment Rate (March), ECB Deposit Rate Decision, US Building Permits (March), and US Housing Starts (March)
– Friday: Japan Inflation Rate (March)
The European Central Bank meeting on Thursday will be particularly significant, as markets expect a rate reduction amid persistent uncertainty surrounding US-EU tariff negotiations and stabilizing inflation metrics. Interest rate futures currently reflect expectations for three additional 25 basis point cuts before year-end.
Market Outlook and Trade Tensions
While today’s rally is encouraging, market participants remain cautious about the ongoing trade tensions between the US and China. China has responded to Trump’s tariffs with a 125% tariff on all US exports, though Beijing described the smartphone reprieve as a “small step” toward easing the trade fight between the world’s two largest economies.
The “Magnificent Seven” tech stocks (Apple, Microsoft, Nvidia, Amazon, Tesla, Google parent Alphabet, and Facebook parent Meta Platforms) lost approximately $2.1 trillion, or 14% of their value, following the initial tariff announcement on April 2. While they have recovered some ground since Trump paused tariffs except on China last Wednesday, uncertainty about future trade policy continues to weigh on investor sentiment.
As the week progresses, market participants will maintain close attention on evolving trade negotiations as government officials and business executives worldwide engage with the Trump administration on trade policies. The combination of earnings reports, economic data releases, and ongoing trade developments will likely contribute to continued market volatility in the days ahead.