TNB Tech Minute: Tech Stocks Soar After Temporary Tariff Rollback
WSJ Tech News Briefing
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Here's your TNB Tech Minute for Monday, May 12th. I'm Victoria Craig for The Wall Street Journal.
A 90-day reduction in U.S.-China tariffs sent relief through the tech-heavy Nasdaq in today's trading session. The index jumped more than 4 percent, helped by the magnificent seven group of companies that have been punished by the trade war. Today's gains propelled the Nasdaq into bull market territory, which means it rose at least 20 percent from its recent low in early April.
Shares of Apple rallied over 6 percent in the broader tech rally. Meanwhile, the Wall Street Journal exclusively reports the tech giant is mulling whether to raise prices on its new fall iPhone lineup. People familiar with the decision-making say Apple does not want to attribute the price increase to U.S. tariffs on China, where the company makes most of its devices.
Instead, it would rather pin the extra cost on new features and a new, thinner design. Though the U.S. and China agreed to pause most tariffs, a 20 percent levy is still in place on Chinese imports, which includes smartphones. President Trump imposed that tariff on China earlier this year for what he said is the country's role in the fentanyl trade.
And one more exclusive story to tell you about. San Francisco-based AI startup Perplexity is in discussions for a new funding round that would value it at $14 billion, according to people familiar with the matter. They say that's a 50% boost from late last year. It underscores continued enthusiasm from investors for AI companies. Perplexity faces stiff competition from established players, and it's also been criticized by new publications for using content without permission.
Wall Street Journal parent company Dow Jones sued the startup last year. For a deeper dive into what's happening in tech, check out Tuesday's Tech News Briefing podcast.