Shares of U.S. social media companies reacted on Monday after President Donald Trump announced that a deal regarding TikTok had been reached.
Trump shared the news on Truth Social, saying: “The big Trade Meeting in Europe between The United States of America, and China, has gone VERY WELL! It will be concluding shortly. A deal was also reached on a ’certain’ company that young people in our Country very much wanted to save. They will be very happy!”
Following the announcement, Snap Inc (NYSE:SNAP) slid 1% and Meta (NASDAQ:META) declined 0.5%, while Oracle Corporation (NYSE:ORCL) climbed 4%.
U.S. Treasury Secretary Bessent later confirmed to reporters that “commercial terms of TikTok deal have been agreed” and that there were “very good discussions on TikTok.” He also noted that trade negotiations with China will continue.
The announcement comes after prior reports indicated that the U.S. government was prepared to enforce a ban on TikTok if Chinese parent company ByteDance failed to finalize a divestiture agreement.
Bessent added that President Trump and Chinese President Xi are expected to speak on Friday to finalize the TikTok deal. He further noted that a “wide range of issues with China” were covered during the trade meeting, including collaboration on anti-money laundering measures.
Additionally, Bessent addressed concerns about the “poor timing” of an investigation into NVIDIA (NASDAQ:NVDA), though no specific details were disclosed regarding that discussion.