ASML Holding NV (ASML) shares surged 5.28% in Monday's trading session, riding a wave of optimism that swept through European technology stocks. The rally was triggered by a significant breakthrough in U.S.-China trade relations, which saw both countries agreeing to suspend most tariffs on each other's goods while further negotiations continue.

The trade agreement, reached during talks in Switzerland, involves the United States cutting tariffs on Chinese imports from 145% to 30%, while China will reduce tariffs on U.S. goods from 125% to 10%. This 90-day trial period aims to ease ongoing trade tensions and is expected to boost cross-border commerce, lower input costs, and alleviate supply chain pressures across key industries, including the crucial semiconductor sector.

As a leading supplier of photolithography systems for the semiconductor industry, ASML stands to benefit significantly from this development. The easing of trade tensions could potentially boost demand for advanced chips and related manufacturing equipment, directly impacting ASML's business. Furthermore, the broader positive sentiment in the tech sector was evident, with ASML's peers also experiencing substantial gains. ASM International and BE Semiconductor Industries rose 6.8% and 5.9% respectively, while other European chip makers like Infineon and STMicroelectronics saw their shares climb more than 6%. This collective surge underscores the semiconductor industry's sensitivity to global trade dynamics and highlights the potential positive impact of improved U.S.-China relations on the sector's growth prospects.