Favorable Sino-US trade news sparks enthusiasm among bulls, with the market capitalization of the "Magnificent Seven" US stocks surging by 6 trillion overnight!

On Monday, US stocks surged after China and the US agreed to mutually reduce tariffs.The market capitalization of the "Magnificent Seven" tech stocks soared by $837.5 billion (approximately 6 trillion yuan), marking the sharpest increase since April 9.

The "Magnificent Seven" refers to seven companies: Apple, Microsoft, Amazon, Tesla, Meta, Nvidia, and Google.

Previously, US tech stocks, such as semiconductor companies and smartphone manufacturers, had been severely impacted by global trade tensions. The trade war could disrupt supply chains and harm major US corporations.

Now, with China and the US temporarily exempting most of the additional tariffs imposed on each other, investors are finally breathing a sigh of relief.

Apple's stock price rose by approximately 6% on Monday. With 90% of its iPhones produced in China, the company stated in its earnings report this month that it expects tariffs to increase its costs by $900 million this quarter.

Amazon surged by 8% on Monday. Many sellers on Amazon rely on Chinese products.

Chinese tech stocks listed in the US also saw significant gains. Chinese ADRs outperformed the broader market, with the Nasdaq Golden Dragon China Index rising by 5.4%. Chinese e-commerce giants Alibaba rose nearly 6%, and Pinduoduo surged over 6%.

Despite still facing chip export controls, Nvidia's stock price rose by approximately 5% on Monday; AMD's stock price also increased by about 5%; Broadcom rose by about 6%; and Qualcomm rose by about 5%.

Stock prices of other companies in the semiconductor supply chain also surged. Marvell Technology's stock price soared by 8%. The company postponed its scheduled investor day last week due to macroeconomic uncertainties.

TSMC, the world's largest chip manufacturer, saw its US-listed shares rise by approximately 6%. Meanwhile, ASML, the world's largest manufacturer of photolithography machines, saw its US-listed shares rise by 6%.

Although semiconductors and some electronic products were temporarily exempted from "reciprocal tariffs" by US President Trump last month, the US stated that the exemptions are only temporary and that these products may still face industry-specific tariffs. This has kept investors vigilant about the performance of major tech stocks.

Driven by the rally in major tech stocks on Monday,the Nasdaq 100 Index has rebounded by more than 20% from its low last month, entering a "technical bull market".

Daniel Ives, head of global tech research at Wedbush Securities, said in a report on Monday: "As China and the US clearly accelerate efforts to reach a broader agreement, we believe the market and tech stocks will hit new highs in 2025. In the coming months, investors may focus on the next steps in trade negotiations."

"The bulls scored a major victory early this morning, and in our view, the weekend talks represented the best-case scenario," the report said.