24/7 Wall St. Insights:
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President Trump seemed to offer exemptions to certain tech segments over the weekend, only to say “nobody was off the hook.”
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Administration representatives added to the confusion by saying they were exempt, but would face tariffs later.
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The market was ignoring the chaos and boosting the Magnificent 7 stocks higher along with other tech sector names.
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President Trump created his signature chaos over the weekend by first seemingly carving out from his “Liberation Day” tariffs an exemption for certain technology segments. It appeared that computers, smartphones, and certain equipment manufacturers would not be subject to the steep levies that were imposed globally, including those on China.
Yet just one day later, Trump upended everything by writing on his social media site, “”NOBODY is getting off the hook” for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!”
He said no “exception” was given to his tariffs, there were “just moving to a different Tariff ‘bucket.'”
Commerce Secretary Howard Lutnick seemed to add to the confusion when he told ABC News, “They’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two.”
Magnificent 7 move higher anyway
While tech stock standing on tariffs remains uncertain, investors are shrugging of confusion and are bidding Magnificent Seven stocks higher in premarket trading.
The biggest beneficiary this morning is Apple (NASDAQ:AAPL), whose shares are up 6.2% heading into the opening bell, followed by Nvidia (NASDAQ:NVDA), up 3.9%.
The two had been expected to be the biggest winners from the tariff exemption when it was originally announced, but that was thrown into doubt by the subsequent comments made by Trump and his representatives.
Any rally could still be short-lived if Lutnick’s statement that tech stocks would still be getting hit with tariffs in the very near future.
Other Magnificent Seven stocks rising this morning are Tesla (NASDAQ:TSLA), up 2.3%, Meta Platforms (NASDAQ:META) is 1.8% higher, Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), 1.7%, and Amazon (NASDAQ:AMZN), 1.5%. Microsoft (NASDAQ:MSFT) trailed the pack at a less than 1% gain.
Tech stocks, generally, seemed to be dismissing the conflicting signal given out over the weekend as Advanced Micro Devices (NASDAQ:AMD) and Super Micro Computer (NASDAQ:SMCI) were rising strongly as well, up 3% and 4% respectively. Palantir Technologies (NASDAQ:PLTR) jumped over 7%.
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