11:33 AM EDT, 05/12/2025 (MT Newswires) -- Semiconductor and technology stocks were rallying on Monday after the US and China agreed to suspend most tariffs on each other's goods.

Washington and Beijing reached an agreement on a 90-day suspension of reciprocal duties following their talks in Switzerland over the weekend. The two sides had been in a trade war since President Donald Trump's announcement of sweeping new tariffs on April 2.

Effective Wednesday, China will slash its tariffs on US goods to 10% from 125%, while the US will lower duties on Chinese products to 30% from 145%.

Shares of chipmaker Nvidia ( NVDA ) were up 3.8% intraday. Qualcomm ( QCOM ) , Broadcom ( AVGO ) and Advanced Micro Devices ( AMD ) advanced between 4% and 4.4%. Semiconductor solutions provider Marvell Technology ( MRVL ) soared 7.1%.

Taiwan Semiconductor Manufacturing's ( TSM ) New York Stock Exchange-listed shares jumped 5.6%. Apple ( AAPL ) climbed 5.3%, while Amazon ( AMZN ) surged 7.2%.

"With US/China clearly on an accelerated path for a broader deal, we believe new highs for the market and tech stocks are now on the table in 2025 as investors will likely focus on the next steps in these trade discussions which will happen over the coming months," Wedbush Securities said in a Monday note.

These tariff cuts likely take a recession "off the table for now," Wedbush analysts, including Daniel Ives, wrote.

"This is very bullish news for the tech trade as the supply chain concerns will now be significantly reduced...although there is more wood to chop around chip restrictions and other issues in the (artificial intelligence) trade that need to be addressed as part of a broader deal with US/China," Ives said.

Price: 120.78, Change: +4.13, Percent Change: +3.54