Tech Stocks Rebound on Hopes of Tariff Relief; Nvidia Leads with 5% Surge

Wall Street – After a turbulent stretch marked by historic losses, technology and semiconductor stocks staged a powerful rebound Tuesday, buoyed by growing speculation that the White House may ease its aggressive tariff stance. The rally was led by Nvidia, which surged nearly 5%, restoring investor confidence in a sector rattled by uncertainty.

The resurgence follows three consecutive volatile sessions during which the market grappled with President Donald Trump’s sweeping tariff proposals. While concerns remain, investors appeared to latch onto renewed optimism that the administration could delay or soften certain trade measures in response to mounting pressure from corporate leaders and economic analysts.

Nvidia and Tesla Set the Pace

Among the “Magnificent Seven” tech giants, Nvidia and Tesla outpaced the field, each rising close to 5% by midday. Other heavyweights such as Meta Platforms, Amazon, Apple, Microsoft, and Alphabet (Google) all posted gains between 1% and 2%, collectively contributing to the Nasdaq’s recovery after last week’s punishing losses.

The rally comes after the group shed approximately $1.8 trillion in market value over just two trading sessions, marking one of the most significant pullbacks since the 2020 pandemic crash.

“Investors are reacting to the idea that the tariffs might not be as severe or as immediate as previously feared,” said Laura Bennett, a senior equity strategist at Global Insight Capital. “There’s still caution in the air, but today’s bounce suggests many are betting on a softer landing.”

Semiconductors Surge on Optimism

Semiconductor stocks also posted solid gains. The VanEck Semiconductor ETF rose more than 3%, following a 2% climb on Monday. Advanced Micro Devices (AMD), Lam Research, and Micron Technology each rallied around 3%, brushing off recent pressure stemming from fears that tariff costs could ripple through supply chains and suppress tech demand.

While chipmakers were spared in the latest round of duties, industry analysts caution that the sector could still face tariffs in the near future. “There’s a lot of noise around chips right now,” noted Peter Langston, a tech policy expert at Brookdale Research. “Even though they’ve been excluded for now, the sector isn’t immune from indirect fallout.”

Corporate Moves: Buybacks and Big Deals

Elsewhere in the tech space, Broadcom jumped 7% after unveiling a $10 billion stock buyback program, signaling confidence in its long-term fundamentals despite near-term volatility. Marvell Technology also popped more than 7% on news that it will sell its automotive Ethernet division to Germany’s Infineon Technologies for $2.5 billion in cash — a strategic move investors welcomed.

Looking Ahead

Despite the day’s positive momentum, experts advise caution. Monday’s session marked the highest trading volume in nearly 20 years, highlighting the heightened state of market anxiety. The broader outlook remains tied to tariff negotiations, and the potential for retaliatory measures from U.S. trading partners still looms large.

“While today’s gains are encouraging, this is not a return to normalcy,” said Bennett. “We’re likely to see continued swings until there’s real clarity from the White House on its trade policy direction.”

With volatility entrenched and global supply chains in flux, tech investors appear to be riding the rollercoaster — hopeful that behind the noise, a more stable path may soon emerge.