The US announced the exemptions on Friday, but US President Donald Trump said he would announce tariff rates for imported semiconductors later in the week.
“The exempted tech products would face new duties within the next two months,” US commerce secretary Howard Lutnick said.
These product categories make up about 20% of US imports from China, according to Deutsche Bank analysts.
Still, tech stocks jumped, with Apple rising 4.7% in premarket trading.
Chip stocks also gained, with Nvidia adding 2.1% and Micron Technology up 4.4%, while PC maker HP and server maker Hewlett Packard Enterprise were 3.6% and 3.3% higher, respectively.
The exemptions were the latest change to Trump’s tariff policies that have roiled global markets as investors, consumers and companies question the impact on economic growth and inflation.
“Some will certainly interpret a one-two-month reprieve as a positive and there will be strong expectations that the administration won’t follow through,” said Michael O’Rourke, chief market strategist at JonesTrading.
“Nonetheless, the president sent the trade hawks out to control the messaging, and that is a market negative,” O’Rourke said.
At 6.48am, Dow E-minis were up 355 points, or 0.88%, S&P 500 E-minis were up 67.75 points, or 1.26%, while Nasdaq 100 E-minis were up 274.5 points, or 1.46%.
Last week’s imposition of some reciprocal tariffs followed by a pause – and then an escalation in tensions between the US and China – triggered the wildest swings on Wall Street since the 2020 Covid-19 pandemic.
After slumping earlier in the week, the S&P 500 notched its biggest weekly gain on Friday since November 2023.
The CBOE Volatility Index, considered Wall Street’s fear gauge, hit its highest level since August last week, but closed well off those highs on Friday. It was last down 11.95 points at 33.07.
With the markets closed on Good Friday, the shorter trading week ahead will be scrutinised for signs on how policymakers, businesses and consumers assess the economic outlook amid so much policy uncertainty.
Quarterly US corporate results will be in focus, with Johnson & Johnson and Netflix among companies reporting results later this week.
Citigroup downgraded US equities to “neutral” from “overweight” on expectations that Trump’s sweeping tariffs would hit earnings growth in the region.
A New York Federal Reserve (Fed) survey, due later in the day, will also be watched for changing inflation expectations after survey data on Friday showed a sharp slump in consumer sentiment, along with inflation expectations at their highest level since 1981.
A host of Fed officials, including governor Christopher Waller, are slated to speak later today.
March retail sales data is scheduled for release on Wednesday.
US Fed chair Jerome Powell is also scheduled to speak on the day.