Markets Rally on Trump Chip Sales Easing

Stocks rise as President Trump signals limited chip sales to China and extends a trade truce, boosting investor sentiment.

Markets Rally on Trump Chip Sales Easing

Stock indexes moved higher after President Donald Trump indicated a willingness to let U.S. firms resume some chip sales to China and extend the trade truce with Beijing. In early trading, Asian shares rose about 0.4% before paring gains as China urged local firms not to use Nvidia H20 processors. The dollar slipped slightly while U.S. Treasuries were little changed and gold rose.

The move reflects market focus on policy signals rather than hard data, as investors weigh how export controls and diplomacy could shape the tech supply chain in the coming months.

Policy signals like these show how markets seek clarity when policy moves are uncertain. A small thaw in tech exports could help global supply chains, but it may also squeeze the leverage of U.S. chipmakers if restrictions shift again. The risk is political backlash that could limit the gains if lawmakers push back against easing export controls or if Beijing responds with new curbs. Nvidia, a central player in this dynamic, will be watched for how its products are treated in both markets.

The near term rally hinges on continued policy direction. If the stance hardens, a quick retreat could follow. If contrasts widen between rhetoric and action, market volatility could rise and test investor patience.

Highlights

Policy and market moves will keep shaping the tech relation between the United States and China.