Truce in the US-China trade war sparks market volatility: Maersk's stock price soars, Novo Nordisk's stock price plummets, Trump announces Apple and TSMC will make substantial investments in the United States.

Taiwan • Business • 05/12 18:26
Truce in the US-China trade war sparks market volatility: Maersk's stock price soars, Novo Nordisk's stock price plummets, Trump announces Apple and TSMC will make substantial investments in the United States.

On May 12, 2025, the US and China announced a 90-day suspension of most tariffs, leading to a swift reaction in global markets. Maersk's stock price surged by 14%, becoming the biggest gainer in the Stoxx 600 index; Novo Nordisk's stock plummeted by 8.6% due to US policies aimed at lowering drug prices. Trump announced that Apple would invest $500 billion, and TSMC's investment would increase to $300 billion. At the US investment summit, Taiwanese companies considered relocating part of their supply chain to the US to adapt to policy changes.

Key Updates

05/13 17:25

Soft U.S. inflation data and easing U.S.-China trade tensions boost the S&P 500 and Nasdaq.

On May 13, 2025, the U.S. stock market rose due to the annual growth rate of the April CPI dropping to 2.3% and the easing of trade tensions between the U.S. and China. The S&P 500 and Nasdaq indices increased by 0.9% and 1.49%, respectively. The U.S. and China announced a suspension of some tariffs and significantly reduced tariff rates, which boosted market confidence. Technology stocks led the gains, with the Nasdaq entering a technical bull market. The yield on the U.S. 10-year Treasury bond declined, and the dollar index fell, indicating increased expectations of a shift in Federal Reserve policy.

05/13 10:59

Futures for the three major U.S. stock indices simultaneously declined: Dow futures fell more than 90 points as investors pay attention to inflation data.

On the afternoon of May 13, 2025, futures for the three major U.S. stock indices declined. Dow Jones Industrial Average futures dropped 93 points to 42,400, S&P 500 futures fell 19.25 points to 5,845.75, and Nasdaq 100 futures decreased 85.75 points to 20,863. The market was cautious ahead of the U.S. stock market opening, as investors focused on upcoming U.S. inflation data and economic indicators, which could impact the Federal Reserve's interest rate policy.

05/13 06:59

U.S. stock index futures decline: Market sentiment is cautious after the trade agreement, and the three major indices pull back from their highs.

After the US and China announced a 90-day tariff suspension agreement, US stocks surged early in the week. However, as of 1:30 PM Taipei time, May 13, 2025, US stock index futures retreated. Dow Jones Industrial Average futures fell 104 points to 42,389, S&P 500 futures dropped 20.5 points to 5,844.5, and Nasdaq 100 futures decreased 88.75 points to 20,860. Market sentiment turned cautious as investors reassess the real impact and risks of the trade agreement.

05/13 02:58

Shift in Trump's Tariff Policy: Taiwan Stock Market Rebounds Strongly, New Taiwan Dollar Sees Significant Volatility

Since April 2025, the Taiwan stock market has strongly rebounded, and the exchange rate of the New Taiwan Dollar against the US Dollar has fluctuated dramatically due to President Trump's adjustment of reciprocal tariff policy. On May 12, the US and China announced a significant tariff reduction to be implemented within 90 days, with US tariffs on Chinese goods reduced to 30% and Chinese tariffs on US goods reduced to 10%. This move alleviated global trade tensions and boosted the performance of the Taiwan stock market and the New Taiwan Dollar. Financial author Chen Chongming stated that although exchange rate fluctuations affect short-term returns, he remains confident in the long-term prospects of the semiconductor industry.

05/13 02:26

The US and China reached a 90-day mutual tariff reduction agreement, which boosted global markets: US stocks surged by 1,000 points, and Taiwanese ADRs rose across the board.

On May 12, 2025, the United States and China announced an agreement to mutually reduce tariffs for 90 days, with the United States reducing tariffs from 145% to 30% and China reducing tariffs from 125% to 10%. This move boosted global markets, with all four major U.S. stock indices seeing gains. The Dow Jones Industrial Average jumped 1,160.72 points, and the Philadelphia Semiconductor Index rose by 7.04%. ADRs of Taiwanese companies like TSMC, Micron, and UMC also saw increases, with TSMC ADRs up 5.93%. The market's positive reaction reflects investors' optimism about easing trade tensions.

05/12 18:26

Truce in the US-China trade war sparks market volatility: Maersk's stock price soars, Novo Nordisk's stock price plummets, Trump announces Apple and TSMC will make substantial investments in the United States.

On May 12, 2025, the US and China announced a 90-day suspension of most tariffs, leading to a swift reaction in global markets. Maersk's stock price surged by 14%, becoming the biggest gainer in the Stoxx 600 index; Novo Nordisk's stock plummeted by 8.6% due to US policies aimed at lowering drug prices. Trump announced that Apple would invest $500 billion, and TSMC's investment would increase to $300 billion. At the US investment summit, Taiwanese companies considered relocating part of their supply chain to the US to adapt to policy changes.

05/12 14:26

Apple is planning to increase the price of the new iPhone, while remarks by Trump regarding investments and the US-China tariff ceasefire are driving a strong rebound in US stocks.

On May 12, 2025, Apple plans to increase the prices of the new iPhone series set to launch in the fall, without attributing the increase to US-China trade tariffs. Investment advice from U.S. President Trump and the 90-day temporary mutual tariff reduction agreement between the U.S. and China has driven a rebound in the U.S. stock market, with the S&P 500 index rising 14%. Apple's stock price increased by more than 7% in pre-market trading, driven by progress in trade negotiations.

05/12 07:00

On May 12, 2025, U.S. stock futures rose across the board: Dow futures, S&P futures, and Nasdaq futures rose simultaneously in the Asian trading session.

On May 12, 2025, futures for the three major U.S. stock indices increased during the Asian trading session. As of 1:34 PM Taipei time, Dow Jones futures increased by 446 points to 41,769, a rise of 1.08%; S&P 500 futures increased by 82.25 points to 5,760.25, a rise of 1.45%; Nasdaq 100 futures increased by 394.25 points to 20,531, a rise of 1.96%. This upward trend reflects the market's response to the international economic and trade conditions, setting a positive tone for the U.S. stock market's opening.

05/12 02:59

On May 12, 2025, U.S. stock index futures rose, with the Dow Jones Industrial Average at 41,770, the S&P 500 climbing to 5,759.75, and the Nasdaq 100 reaching 20,542.

On May 12, 2025, at 9:30 AM local time, the three major U.S. stock futures rose. The Dow Jones Industrial Average futures increased by 447 points to 41,770, the S&P 500 futures rose by 81.75 points to 5,759.75, and the Nasdaq 100 futures climbed by 405.25 points to 20,542. Progress in U.S.-China trade negotiations boosted the upward trend, reflecting investor confidence in the market, especially in the strong performance of technology stocks.

05/12 02:59

Former President Trump is optimistic about the future of the U.S. economy and urges investors to buy stocks, taking advantage of trade agreement opportunities.

On May 9, 2025, former U.S. President Trump announced a trade agreement with the United Kingdom, stating that the U.S. economy would "soar like a rocket," urging investors to buy stocks. His promoted "Magnificent and Lavish Act" includes tax cuts, energy deregulation measures, and debt ceiling adjustments. Despite the market's impact from tariff policies, Trump's optimistic attitude and policy initiatives offer investors a fresh perspective.

Maersk Stock Soars, Reflecting Benefits of Eased Trade Tensions

After the US and China reached a tariff suspension agreement in Geneva, global markets generally rose. As a leading company in global container shipping, Maersk benefited from the easing of trade tensions, with its stock price surging by 14% on December 12th, making it the largest gainer in the Stoxx 600 index for the day. Maersk controls about 14% of the world's container shipping capacity and operates 60 ports, making its business highly dependent on international trade flows and extremely sensitive to changes in US-China tariff policies.

European stock markets also rose in tandem, with the Stoxx 600 index up 0.8% in early trading, Germany's DAX index up 1.1%, and France's CAC 40 index up 1.3%. The market generally views this 90-day tariff suspension agreement as providing breathing room for the global economy.

Novo Nordisk Stock Plummets, Drug Pricing Policy as a Source of Pressure

In stark contrast to Maersk, Danish pharmaceutical giant Novo Nordisk's stock fell by 8.6% on the same day, becoming the biggest loser in the Stoxx 600 index. This decline was mainly due to US President Trump's announcement of a policy to significantly lower prescription drug prices, which directly impacted Novo Nordisk, whose main products are the weight loss drug Wegovy and diabetes medications.

Novo Nordisk's market value has decreased by one-third this year, losing its status as the most valuable company in Europe. The Danish stock market has also been dragged down, with a cumulative decline of 3.4% this year. Concerns about US drug price reforms have further spread to other European and US pharmaceutical companies, putting pressure on the overall pharmaceutical sector.

Trump Claims Apple and TSMC Will Invest Heavily in the US

Against the backdrop of a trade war pause, US President Trump told the media in the Oval Office that he had spoken with Apple CEO Tim Cook that morning, claiming that Apple would invest up to $500 billion in the US to build multiple factories. Trump emphasized, "He (Cook) will increase his numbers. $500 billion, and he will build many factories for Apple in the US."

Apple's stock opened higher and continued to rise, with midday gains nearing 6%, aligning with the broader US stock market. The market generally believes that Apple benefits from the tariff suspension and the favorable policy of investing in the US, boosting investor confidence.

Additionally, Trump reiterated TSMC's investment amount, stating that TSMC's investment in the US had been "increased" from the original $165 billion to $300 billion. Although TSMC has not officially confirmed this figure, its wafer plant construction and expansion plans in Arizona are underway, covering advanced processes and AI server chip production.

Taiwanese Companies Reassess Supply Chain Layout

At the "Select USA Investment Summit" held in Maryland, Executive Yuan Secretary-General Kung Ming-hsin noted that 138 Taiwanese companies and 183 representatives participated, marking the largest turnout in history. Kung stated that many Taiwanese multinational companies are considering shifting part of their supply chain to the US in response to US tariff policies.

He noted that Taiwan's foreign investment was mainly concentrated in mainland China in the past, but with the US-China trade war and the rise of the AI industry, Taiwan's export share to China has fallen to less than 10%, while the US has become Taiwan's largest investment destination. Kung emphasized that this reflects the deepening and stability of Taiwan-US economic cooperation.

Additionally, according to Dun & Bradstreet (D&B), Taiwanese companies are actively using data tools to optimize supply chain transparency and ESG compliance to meet the high standards required by the US market for suppliers. These strategies position Taiwanese companies as key partners in the rebuilding of US manufacturing.

References

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