(Reuters) - Wall Street futures experienced a noticeable increase on Monday, buoyed by the White House's decision to exempt crucial technology products such as smartphones and computers from reciprocal tariffs imposed on Chinese imports. This move provides temporary relief for key U.S. technology imports, which have been under scrutiny as the ongoing trade tensions between the U.S. and China continue to unfold.

The exemptions were officially announced by the U.S. government on Friday, sparking optimism among investors. However, President Donald Trump has indicated that he plans to reveal new tariff rates for imported semiconductors later this week. This prospect keeps the atmosphere tense, as market participants remain anxious about potential impacts on the tech sector.

U.S. Commerce Secretary Howard Lutnick stated that while certain technology products are currently exempt from tariffs, new duties will be applied within the next two months. This limited timeframe has led to a mixed reaction among investors, who are trying to gauge the long-term implications of these policy changes.

Despite the uncertainty, futures for the major U.S. stock indexes surged by more than 1% each. In premarket trading, shares of Apple Inc., known for its iconic iPhone, soared by 5.3%. This boost reflects the market's relief over the tariff exemptions, which are crucial for companies relying heavily on imports from China.

Other technology stocks also saw significant gains, with Nvidia's shares rising by 2.2% and Micron Technology experiencing a 4.1% increase. Additionally, shares of HP, a prominent PC manufacturer, climbed 5.4%, while server maker Hewlett Packard Enterprise saw a 5% rise. These developments underscore the broader impact of tariff policies on the technology sector and its investors.

The exemptions represent the latest twist in Trumps tariff strategy, which has consistently unsettled global markets. Investors, consumers, and businesses alike are grappling with the uncertainty surrounding the future of these tariffs, questioning how they will affect economic growth and inflation rates. Some will certainly interpret a 1-2 month reprieve as a positive, and there will be strong expectations that the Administration won't follow through, commented Michael O'Rourke, chief market strategist at JonesTrading. However, he added, the President sent the trade hawks out to control the messaging, and that is a market negative.

As of 5:12 a.m. ET, Dow E-minis were up by 444 points, or 1.1%, S&P 500 E-minis climbed 79.25 points, or 1.47%, and Nasdaq 100 E-minis rose by 317 points, or 1.69%. This surge comes after a turbulent week where the imposition and subsequent pause of reciprocal tariffs between the U.S. and China resulted in some of the most volatile market fluctuations since the onset of the COVID-19 pandemic in 2020. After an earlier slump, the S&P 500 managed to record its largest weekly gain since November 2023 on Friday.

The upcoming trading week, albeit shorter due to the Good Friday holiday, will be closely monitored for signs of how policymakers, businesses, and consumers are navigating the economic landscape amidst ongoing policy uncertainties. Corporate earnings reports for the first quarter will also be a focal point, with major players like Johnson & Johnson and Netflix scheduled to release their results later this week. Shares of Goldman Sachs saw a 2.2% rise ahead of their earnings announcement, indicating investor confidence.

Meanwhile, Citigroup has downgraded U.S. equities from overweight to neutral, expressing concerns that Trumps extensive tariff measures could stifle earnings growth in the region. As investors seek clarity, a survey from the New York Federal Reserve, set to be released later on Monday, will be closely watched for any shifts in inflation expectations. This comes after recent survey data indicated a sharp decline in consumer sentiment, alongside inflation expectations reaching their highest levels since 1981. Such indicators are vital for understanding the economic climate as the market reacts to evolving policy decisions.