Tariff Exemption Rally Lifts U.S. Stocks as Traders Weigh Next Move

by | Apr 14, 2025 | The Doctor's Dose

📰 Tariff Exemption Rally Spurs Broad Market Gains

The tariff exemption rally on April 14, 2025, injected fresh optimism into U.S. equities after the Biden administration announced a temporary pause on tariffs affecting key tech imports like smartphones, laptops, and semiconductors. Traders quickly positioned for upside, sending all major indexes higher and providing a much-needed break from the bearish trendlines of the past month.

This tariff exemption rally comes at a crucial time as investors grapple with high inflation, rising yields, and global economic uncertainty. For swing traders and intraday players alike, today’s rally offered clear setups and directional moves that rewarded planning and discipline.

Tariff exemption rally

📊 Index Recap: Gains Across the Board

Index Close Daily Change
Dow Jones 40,524.79 +312.08 pts (+0.8%)
S&P 500 5,405.97 +42.61 pts (+0.8%)
Nasdaq Composite 16,831.48 +107.03 pts (+0.6%)
Russell 2000 1,880.88 +20.67 pts (+1.1%)

Despite the upside momentum sparked by the tariff exemption rally, the broader market remains underwater YTD, with the Nasdaq still down over 12%.

📈 Sectors in Focus: Tech and Autos Lead

Technology and automotive stocks were the primary beneficiaries of the tariff exemption rally:

  • Apple (AAPL): +2.2%

  • Dell Technologies (DELL): +4.0%

  • Nvidia (NVDA): +3.1%

  • Ford (F) and General Motors (GM): +4% and +3.5%, respectively

Investors cheered signals that some auto-related tariffs may also face delay or revision, compounding the enthusiasm generated by today’s tariff exemption rally.

🛠️ Technical Picture: Death Cross Looms

Despite today’s bullish price action, technical analysts at TraderInsight are still wary. Both the S&P 500 and Nasdaq 100 recently completed a death cross, with the 50-day moving average falling below the 200-day moving average. This pattern often signals continued weakness ahead, although recent tariff exemption rallies like today’s can sometimes create short-term trend breaks.

🪙 Commodities and Treasuries: Divergent Moves

  • Gold continued its surge past $3,200/oz, driven by hedging against geopolitical risk.

  • WTI Crude climbed 1.3% as traders speculated on renewed demand with softened trade tension.

  • 10-Year Treasury Yield declined to 4.45%, signaling demand for safety despite the tariff exemption rally.

🌐 Global Echo: Worldwide Markets React

International equity markets followed suit:

  • Germany’s DAX and France’s CAC 40: +2%

  • Nikkei 225 (Japan): +1.18%

  • Hang Seng (Hong Kong): +2.0%

  • Shanghai Composite: +0.8%

The global response to the tariff exemption rally highlights the interconnectedness of tech supply chains and investor sentiment.

🔮 Looking Ahead: Relief or Reversal?

Commerce Secretary Howard Lutnick made it clear that the tariff pause is not permanent, and future levies are still under review. Traders should consider the tariff exemption rally as a short-term relief event—possibly the calm before another policy storm.

At TraderInsight’s Boot Camp, we’ve been preparing students for exactly these kinds of scenarios. Just this morning, our alumni were positioned ahead of breakouts in AAPL, NVDA, and TSLA, recognizing patterns that the tariff exemption rally helped push into profit zones.

📚 External Sources for Deeper Context

 

Good Trading,

Adrian Manz