Markets around the world have reacted with palpable relief to two major decisions by the Trump administration. First, on 9 April, reciprocal tariffs (except on China) were delayed for 90 days – which proved the catalyst for the third-largest daily gain for US stocks since the Second World War.

Many observers pegged the U-turn on movements in government bond yields which revealed declining confidence in the US. While yields have settled, they remain elevated.

The second significant move was a tariff exemption for semiconductors, smartphones and other consumer electronics like laptops unveiled late on 11 April, which significantly encompassed China, although subsequent comments from president Trump have raised uncertainty about how long exactly the exemption might last.

A look at some of the best-performing stocks on both sides of the Atlantic is instructive. The tariff exemptions clearly gave a boost to Apple (AAPL:NASDAQ), which has a significant chunk of its supply chain not just in China but in other Asian countries hit by substantial tariffs.

A similar dynamic was at work for Dell Technologies (DELL:NYSE) as well as chip makers Nvidia (NVDA:NASDAQ), Broadcom (AVGO:NASDAQ) and Advanced Micro Devices (AMD:NASDAQ).

Broader relief at the White House’ apparently more measured approach on tariffs also boosted aerospace firms Boeing (BA:NYSE) and Melrose Industries (MRO) as well as quality UK industrial stocks Halma (HLMA) and Intertek (ITRK).

Hopes the US might now escape a widely predicted recession helped put Walmart (WMT:NYSE) on the front foot while reduced concern about global financial stability helped lift Barclays (BARC) and Standard Chartered (STAN), the latter also supported by an improved Asian outlook.

However, the strong showing for precious metal miners Newmont (NEM:NYSE) and Fresnillo (FRES) hint at lingering nervousness as gold’s safe haven credentials have helped push it to new record highs. 

Disclaimer: The editor of this article (Ian Conway) owns shares in Halma.

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