NEW YORK: Global tech markets rallied on May 12, 2025, after the United States and China announced a temporary easing of trade tariffs, aimed at stabilising supply chains and boosting innovation sectors. The agreement triggered immediate investor optimism, with major indices in the US and Asia closing higher.
The Nasdaq Composite rose by 2.4%, led by surges in shares of semiconductor and cloud computing firms, while China’s tech-heavy STAR Market gained over 3%. Companies such as Nvidia, AMD, and Alibaba were among the top gainers, reflecting renewed confidence in cross-border trade cooperation.
The deal, described as an “economic thaw,” suspends planned tariff hikes on key components used in electronics and artificial intelligence manufacturing. Both countries have also committed to deeper collaboration on research standards and intellectual property protections over the next six months.
Market analysts say the move signals a potential shift towards a more stable geopolitical climate in the tech sector, which has suffered from years of uncertainty. Technology firms are expected to benefit most, particularly those with global supply chains reliant on Asia-US trade.
Investors also responded positively to news that further discussions are scheduled at the upcoming G20 summit, where broader terms for long-term economic cooperation may be outlined.
While experts caution that the deal is provisional, many see it as a meaningful step toward restoring confidence in the global tech investment landscape. Traders and analysts alike are watching closely for sustained growth, particularly in artificial intelligence, cloud computing, and chip manufacturing.
As policy stabilises, the tech industry is poised to continue driving global market momentum into the second half of the year.
