All four major US stock indices turned positive on Monday, with the Philadelphia Semiconductor Index rising over 1.5%. Despite President Trump's renewed threats to escalate tariffs, the market interprets this as the exhaustion of bad news and has transformed the market's mood. With the Taiwan stock index futures surging by 212 points during night trading and TSMC futures rising by 10 NTD, today's opening of the Taiwan stock market is poised to rebound, providing an opportunity for short-term confidence to recover.

At Monday's close, all four major US indices were in the green, with the Dow up by 35 points to close at 42,305 points; the S&P 500 rose 0.41% to 5,935 points; the NASDAQ gained 147 points, closing at 19,242 points; and the Philadelphia Semiconductor Index surged by 1.57%, finishing at 4,832 points. In the tech sector, Nvidia and Meta showed strong performances, acting as the main drivers of the rebound, while Tesla's stock price declined due to poor sales performance in Europe.

Over the weekend, Trump announced that starting this Wednesday, the tariffs on imported steel and aluminum would be doubled from 25% to 50%, causing a brief market shakeup. However, investor attention quickly shifted to potential breakthroughs in US-China trade negotiations, including a consensus on a 90-day suspension of most tariffs reached by the US Treasury Secretary and the Chinese Vice Premier, generating positive market sentiment.

Turning back to the Taiwan stock market, the weighted index fell sharply by 344 points yesterday, closing at 21,002 points, with a decline of 1.61% and a trading volume of 344.7 billion NTD. The three major institutional investors sold a total of 54.7 billion NTD, among which foreign investors sold 53.87 billion NTD, and proprietary traders also sold 10.5 billion NTD, marking a significant capital outflow day.

Nonetheless, the night trading showed a strong rebound, with the Taiwan stock index futures up by 212 points, and TSMC futures gaining 10 NTD, while retail investor financing also increased by 3 billion NTD, indicating emerging momentum for a rebound from the deep drop. Observing yesterday's sector performance, electronic stocks were mainly dragged down, especially TSMC and UMC.

However, as the Philadelphia Semiconductor Index showed strength, TSMC ADRs and related tech stocks improved, likely aiding the recovery of electronic stocks and boosting overall market performance today. Short-term, whether the market can fill the gap from yesterday's drop will be crucial for the rebound; if the trading volume recovers, there is a chance to challenge the resistance around 21,200 points. In terms of investment strategy, it is suggested to take short-term long positions cautiously while retaining capital in anticipation of developments in US-China negotiations and the upcoming non-farm payroll report.