Micron Technology (MU) shares are soaring 9.67% in pre-market trading on Monday, as the semiconductor sector experiences a significant rally following a breakthrough in U.S.-China trade negotiations. The surge in Micron's stock price is part of a broader uptick in chip-related companies, with the industry responding positively to the news of reduced trade tensions.

The rally comes after the United States and China agreed to dramatically scale back tariffs on each other's goods during weekend talks in Geneva. The deal, which came faster than expected, will see President Trump's "reciprocal" tariff on China slashed to 10% from 125%. This reduction is set to last for 90 days while further negotiations are ongoing, providing a much-needed reprieve for the semiconductor industry that has been under pressure from the trade war.

Other major players in the semiconductor and chip sector are also seeing substantial gains. Nvidia shares are up 3.9%, Taiwan Semiconductor Manufacturing rose 4.8%, and Qualcomm increased by 3.6%. Additionally, Marvell Technology and Advanced Micro Devices saw increases of 6.4% and 5.7% respectively. The positive momentum in the sector reflects investor optimism about the potential for improved business conditions and reduced supply chain disruptions for chip manufacturers and exporters.