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US stocks surged on Monday as investors welcomed reports that the next wave of President Trump’s tariffs will be more targeted than threatened.
The S&P 500 (^GSPC) rose nearly 1.5% on the heels of the broad benchmark snapping a four-week losing streak. The Dow Jones Industrial Average (^DJI) advanced about 1.2%, while contracts on the tech-heavy Nasdaq Composite (^IXIC) led the gains, up 1.8%.
Markets are weighing signs that proposed US reciprocal tariffs will be narrower than expected when Trump announces them on April 2, per reports from Bloomberg and The Wall Street Journal. That’s providing some relief from fears that an escalating trade war will drive up inflation and further slow the economy.
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The yield on the 10-year Treasury (^TNX) rose about four basis points to 4.29% as worries about a tariff hit to growth and global trade eased and appetite for risk sharpened.
Tesla’s (TSLA) stock rallied as markets assessed signs Trump won’t unveil tariffs on the auto sector on April 2, as anticipated. Tech stocks more broadly got a bid after Jack Ma’s Ant said it expects a hefty cut to AI costs using alternative chips to Nvidia’s (NVDA).
US economic output moved higher in March but still reflected an overall growth trajectory for the US economy that was slower than initially hoped in the first quarter, according to S&P Global’s flash US composite PMI.
The highlight of the week’s economic data is the release of February’s Personal Consumption Expenditures Index, the Federal Reserve’s preferred inflation gauge, on Friday.
On the earnings front, quarterly results from Lululemon (LULU), GameStop (GME), and Dollar Tree (DLTR) are due this week.
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Nvidia, AMD, Meta lead tech stock rally as tariff news, AI breakthroughs boost sector
Yahoo Finance’s Myles Udland reports:
Read more here.
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Latest data points to slowing economic growth in the first quarter
US economic output moved higher in March but still reflected an overall growth trajectory for the US economy that was slower than initially hoped in the first quarter.
S&P Global Market Intelligence chief business economist Chris Williamson wrote in a release Monday morning that his firm’s data shows the US economy likely grew at a 1.5% annualized pace during the first quarter of 2025. As Williamson highlighted, this points “to a slowing of GDP growth” compared to the 2.3% growth in the fourth quarter of 2024.
S&P Global’s flash US composite PMI, which captures activity in both the services and manufacturing sectors, came in at 53.5 in March, up from 51.6 in February. Economists had expected the index to fall to 50.9.
Increased activity in the services sector drove the gains, with the services PMI business activity index hitting a reading of 54.3, its highest level in three months. Meanwhile, the manufacturing PMI declined to 49.8 in December, down from 52.7 and marking a three-month low for the index.
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Market action shows how tariffs remain the ‘primary catalyst’ for stocks’ recovery
A rally in US stocks Monday morning amid reports that President Trump’s tariffs will be less widespread than feared underscored how more clarity on the administration’s new policies remains the key to a market bounce-back.
The S&P 500 (^GSPC) rose more than 1% at the open, while the Dow Jones Industrial Average (^DJI) added about 0.8%, or over 300 points. The tech-heavy Nasdaq Composite (^IXIC) led the gains, rising about 1.5%.
The rally came after both Bloomberg and the Wall Street Journal reported Trump’s “Liberation Day” reciprocal tariffs will be more measured than initially thought.
Tariff uncertainty was a key catalyst for the stock market sell-off over the past month. Piper Sandler chief investment strategist Michael Kantrowitz said he’d be watching for any clarity on those policies as the key turning point for the stock market’s drawdown to potentially bottom.
“Usually, [when] the primary catalyst that stops becoming a problem, essentially, that allows the market to find its footing,” Kantrowitz told Yahoo Finance.
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Stock futures jump on reports of more targeted tariffs
Stock futures surged premarket to session highs after reports suggested President Trump would take a more targeted approach to reciprocal tariffs.
S&P 500 futures (ES=F) rose 1.1% while Dow Jones Industrial Average futures (YM=F) climbed 0.9%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) jumped 1.4%, leading the gains.
Tech stocks broadly rose, with Tesla (TSLA) rising about 4%, Meta (META) up 2.6%, and Nvidia (NVDA) advancing 1.8% a little over an hour before the opening bell.
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Tesla stock rises as trade war worries ease
Tesla (TSLA) stock climbed almost 4% in premarket trading Monday, poised to kick the week off on a positive note amid optimism about an easing in US tariff plans.
At the weekend, reports said that President Trump will hold off from bringing in tariffs on the auto sector on April 2 as was anticipated. Worries about the impact of new trade duties on Tesla’s upcoming results contributed to Wall Street’s recent cuts to earnings outlooks.
On Monday, the electric car maker responded to complaints about a pause in its Full Self-Driving trial in China, saying it will release the features once regulatory approval is secured.
At the same time, Tesla is grappling with falling sales in overseas markets, as rivals like BYD (BYDDY, 1211.HK) make up ground. BMW (BMW.DE) and Volkswagen (VWAGY, VOW3.DE) outsold the EV maker in Europe in February, fresh data showed.
Tesla shares surged after the US election, driven by investor optimism over its CEO Elon Musk’s close ties to the Trump administration, but have since pulled back from those highs.
The stock began digging itself out of its most recent dip last week after Tesla revealed plans to launch its robotaxi service in 2025.
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Trump’s ‘Liberation Day’ tariffs to be more targeted than threatened: Reports
This morning’s market boost comes courtesy of weekend reports that President Trump’s ‘Liberation Day’ round of reciprocal tariffs will be more measured than feared.
The White House has promised like-for-like tariffs on all US trading partners, with an announcement expected on April 2. Investors have become increasingly worried about the potentially huge impact on global trade and the economy from a tit-for-tat trade war.
But Bloomberg and The Wall Street Journal report that Trump’s administration has narrowed its reciprocal tariff focus to the “dirty 15” countries — the roughly 15% of countries with a trade balance unfavorable to the US. At the same time, Trump won’t bring in proposed duties on chips, cars, and drugs on April 2, the WSJ said.
Bloomberg reported:
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Good morning. Here’s what’s happening today.
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23andMe files for bankruptcy, stock tumbles
23andMe shares plug over 40% before the bell after the troubled DNA testing company filed for Chapter 11 bankruptcy.
The move is aimed at making it easier for 23andMe to find a buyer for the $50 million genetic test provider, though its board has rebuffed a buyout from co-founder Anne Wojcicki. The company also said on Sunday that Wojcicki has stepped down as CEO following a series of failed takeover bids.
