The easing of US-China trade tensions has boosted global stock markets, with AI stocks driving the Philadelphia Semiconductor Index to a record high.
Tensions in US-China trade relations have eased, leading to a rebound in global stock markets. On April 25, the four major US stock indices rose, with technology stocks leading the gains. The Philadelphia Semiconductor Index hit a new high, and AI stocks, such as Nvidia, performed impressively. European stock markets rose simultaneously, with the pan-European STOXX 600 Index reaching its highest level in three weeks and the UK's FTSE 100 Index achieving its longest winning streak since 2019. The market is optimistic about the improvement in US-China trade relations, and strong demand in the AI industry is also boosting semiconductor stocks.
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04/27 23:01
The easing of US-China trade tensions has boosted global stock markets, with AI stocks driving the Philadelphia Semiconductor Index to a record high.
Tensions in US-China trade relations have eased, leading to a rebound in global stock markets. On April 25, the four major US stock indices rose, with technology stocks leading the gains. The Philadelphia Semiconductor Index hit a new high, and AI stocks, such as Nvidia, performed impressively. European stock markets rose simultaneously, with the pan-European STOXX 600 Index reaching its highest level in three weeks and the UK's FTSE 100 Index achieving its longest winning streak since 2019. The market is optimistic about the improvement in US-China trade relations, and strong demand in the AI industry is also boosting semiconductor stocks.
U.S. Stocks Rebound Across the Board, Led by Tech and AI Stocks
After a thaw in the U.S.-China trade standoff, all four major U.S. stock indices closed higher on April 25. The Dow Jones Industrial Average inched up 0.05% to close at 40,113.50 points; the S&P 500 rose 0.74% to 5,525.21 points; the tech-heavy Nasdaq surged 1.26% to 17,382.94 points, hitting a new high since April 2; and the Philadelphia Semiconductor Index climbed 1.03% to 4,251.61 points, also reaching its highest point since early April MoneyDJ News.
The rebound was primarily led by tech and AI thematic stocks. Nvidia's stock price soared 4.3% to $111.01, making it the top gainer among the Philadelphia Semiconductor Index components. Other AI chip-related companies such as Micron rose 3.05%, Marvell Technology increased 2.77%, AMD climbed 2.30%, Broadcom went up 2.21%, and TSMC ADR also rose 0.56% MoneyDJ News.
Reports suggest that China is considering suspending the 125% tariff on some U.S. imports and has already exempted some semiconductor products from additional tariffs. This move eased pressure on the tech industry, becoming a major driver for the rise in tech stocks MoneyDJ News.
European Stocks Rise in Tandem, UK Stocks Achieve Longest Rally in Five Years
Major European stock markets also benefited from the positive impact of the easing U.S.-China trade situation. The pan-European STOXX 600 index rose 0.35% on April 25, closing at 520.45 points, with a weekly gain of 2.7%, reaching a three-week high MoneyDJ News.
The UK FTSE 100 index rose 0.09% to close at 8,415.25 points, achieving its tenth straight day of gains, the longest rally since 2019 MoneyDJ News. Germany's DAX index rose 0.81% to 22,242.45 points; France's CAC 40 index increased 0.45% to 7,536.26 points MoneyDJ News.
Notably, the automotive sector, which is highly sensitive to tariff changes, performed particularly well, with the pan-European automotive sector index surging 5.7% last week. German industrial giant Siemens performed strongly after Citigroup restored its "buy" rating; French aerospace giant Safran also rose due to better-than-expected first-quarter financial results MoneyDJ News.
Easing U.S.-China Trade Tensions Become Market Focus
The improved market sentiment is mainly due to a softening attitude on trade issues between the U.S. and China. Reports from China suggest they are considering exempting high tariffs on some U.S. imports and requiring companies to declare key goods that need tax exemptions, indicating concerns about the consequences of escalating trade wars MoneyDJ News.
U.S. Treasury Secretary Scott Bessent also stated that the high tariff policy is "unsustainable," hinting at a potential agreement. Although U.S. President Trump emphasized that unless China makes "substantial concessions," tariffs will not be unilaterally reduced, the market remains cautiously optimistic about the prospects of negotiations MoneyDJ News.
Strong Demand in AI Industry Drives Semiconductor Stocks Up
Besides the improved trade conditions, strong demand in the AI industry has also become an important factor driving semiconductor stocks up. According to a KPMG survey, as many as 90% of senior executives in the semiconductor industry expect industry revenue to grow by 2025, with 36% expecting growth of more than 10% United Daily News.
Nvidia's executives also highlighted that the AI data center construction boom has not diminished, and energy and computing power demand will continue to grow strongly in the coming years. These positive signals further bolstered market confidence in the AI and semiconductor industries, driving the performance of related stocks United Daily News.
