Shares of U.S. semiconductor firms climbed on Monday following reports that Washington and Beijing agreed to ease trade restrictions for a limited time, according to a Monday report.

Nvidia (NVDA, Financial), Advanced Micro Devices (AMD, Financial), and Broadcom (AVGO, Financial) rose between 4% to 5% after the U.S. cut import tariffs on Chinese goods to 30% for 90 days. China also reduced duties on American products to 10% while talks to resolve broader trade tensions continue.

The rollback follows a prolonged standoff where U.S. tariffs had reached 145%, effectively stalling bilateral trade. China had imposed duties as high as 125% on U.S. imports in retaliation.

Major equity indexes rallied on the developments. The Dow Jones Industrial Average gained 1,000 points, the S&P 500 rose nearly 3%, driven by renewed optimism in the tech sector.

While chip stocks benefited, analysts cautioned that the remaining tariffs could still weigh on consumer prices and growth. Meanwhile, the U.S. continues restrictions on chip exports to China, though Beijing is reportedly easing its own controls on rare earth exports.