U.S. stock markets closed in the green on Monday, buoyed by President Trump’s surprise move to exempt smartphones, computers, and related components from his planned reciprocal tariffs. The announcement eased investor concerns over a potential escalation in the trade war and helped push Bitcoin (BTC) above the $85,000 mark, capping a 7% gain over the past week.
Market Relief Follows Tariff Shift
The decision to soften tariff measures was seen as a strategic pivot by the Trump administration, aiming to minimize consumer price impacts while maintaining pressure in broader trade negotiations. The shift in tone lifted investor sentiment, particularly in the technology sector, which has been one of the most vulnerable to tariff risks.
Apple shares rose following a stock upgrade from KeyBanc Capital Markets, which noted that the worst-case tariff scenario was now “off the table—at least for now.”
Bitcoin Finds Support Above $85,000
In the crypto markets, Bitcoin remained steady above $85K, testing the level several times throughout the session. The coin’s resilience has been attributed in part to global economic uncertainty, positioning it once again as a potential hedge amid geopolitical and monetary risks.
Volatility Drops, Risk Sentiment Improves
The CBOE Volatility Index (VIX) dropped more than six points, signaling waning investor fear. At the same time, U.S. Treasuries slipped, a sign that risk appetite had returned to equities and risk assets more broadly.
Investor Strategy: Caution With Opportunity
Stephanie Guild of Robinhood told CNBC that recent market moves have prompted selective reallocation into equities. “We’ve taken some dry powder and put it to work last week,” she said. However, she stressed the importance of balanced positioning, citing the need for exposure beyond the dollar and a mix of low-volatility and growth stocks.
