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US stocks closed near session highs on Monday as investors welcomed reports that the next wave of President Trump’s tariffs will be narrower than expected.
The S&P 500 (^GSPC) rose almost 1.8% on the heels of the broad benchmark snapping a four-week losing streak. The Dow Jones Industrial Average (^DJI) advanced 1.4%, while contracts on the tech-heavy Nasdaq Composite (^IXIC) led the gains, up 2.3%.
On Monday afternoon, President Trump said he may give “a lot of countries breaks” when it comes to reciprocal tariffs expected April 2. “We may take less than what they’re charging because they’ve charged us so much, I don’t think they could take it,” Trump said.
This followed news reports from Bloomberg and The Wall Street Journal that the US reciprocal tariffs plan may be narrower than previously anticipated. 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 seven basis points to 4.33% as worries about a tariff hit to growth and global trade eased and appetite for risk sharpened.
Tesla’s (TSLA) stock rallied nearly 12% 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.
LIVE 19 updates
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Stocks close near session highs on hopes Trump may scale back next tariff wave
US stocks closed near session highs on Monday amid optimism that President Trump may scale back the next wave of tariffs expected on April 2.
The S&P 500 (^GSPC) rose roughly 1.7% while the Dow Jones Industrial Average (^DJI) advanced 1.4%, or more than 600 points. The tech-heavy Nasdaq Composite (^IXIC) led the gains, up more than 2.2%.
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On Monday afternoon, President Trump said he may give “a lot of countries breaks” when it comes to reciprocal tariffs expected April 2.
“We may take less than what they’re charging because they’ve charged us so much, I don’t think they could take it,” Trump said.
Markets took a leg higher following the President’s comments after the S&P 500 and Nasdaq ended last week with gains.
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A ‘important market turning point’ awaits with first quarter earnings
It’s the final week of the first quarter and, as is typical, analysts have spent the past 12 weeks revising lower their earnings growth projections for the quarter.
For the S&P 500 (^GSPC), estimates for earnings growth have been cut by 4.4%, more than the five-year average of 3.3% and the 10-year average of 3.2%. The largest revisions have come in tariff-sensitive sectors like Consumer Discretionary (XLY) and Materials (XLB).
“Q1 earnings expectations have come down a lot, which sets up an important market turning point once companies start to release results,” DataTrek co-founder Nicholas Colas wrote in a research note Monday morning. “The bar is low enough, especially in tariff-sensitive groups, that companies should be able to beat expectations by an above-average amount.”
As Colas points out, given recent downgrades to the overall macro outlook this year, the looming question for investors is how much bleaker companies see their paths for the remainder of 2025.
“Our view is that companies will likely reduce their Q2 guidance, but not yet dampen expectations for the year as a whole,” Colas wrote. “That should help put a floor under stock prices during the upcoming Q1 earnings season.”
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Signs are mounting that Trump could take Fannie Mae and Freddie Mac private
Yahoo Finance’s David Hollerith reports:
Read more here.
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Stocks move to session highs after Trump hints at tariff ‘breaks’ for countries
Stocks moved to session highs on Monday after President Trump indicated that reciprocal tariffs expected in April may amount to less than the levies other countries charge on US imports.
“Well I may give a lot of countries breaks, but it’s reciprocal, but we might be even nicer than that,” Trump said.
“They’ve charged us so much that I’m embarrassed to charge them what they’ve charged us, but it will be substantial,” the president said.
Trump made the remarks during a gathering at the White House, during which automaker Hyundai announced an investment in the US.
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Trump: ‘I’d like to see the Fed lower interest rates’
Yahoo Finance’s Jennifer Schonberger reports:
Read more here.
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Wall Street’s S&P 500 forecast range is widening
Uncertainty around tariffs has clouded the outlook for stocks, and that’s driving a divergence in Wall Street’s expectations of the S&P 500’s performance this year.
Still, most Wall Street strategists (16 out of 17 strategists tracked by Yahoo Finance, to be exact) see the benchmark index rallying from here.
Yahoo Finance’s Josh Schafer reports:
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Bitcoin and crypto-related stocks rally
Bitcoin (BTC-USD) and crypto-related stocks rallied on Monday as investors went risk-on amid optimism that the Trump administration’s tariffs on April 2 would be narrower than expected.
Bitcoin jumped 3% to hover near $88,000 per token while ether (ETH-USD), solana (SOL-USD), and cardano (ADA-USD) also rose.
Strategy (MSTR), the largest corporate holder of bitcoin formerly known as MicroStrategy, rose 6%.
Crypto miners Riot Platforms (RIOT) and MARA Holdings (MARA), formerly known as Marathon Digital, jumped 7% and 13%, respectively.
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Trending tickers on Monday: AMD, Tesla, 23andMe
Advanced Micro Devices (AMD)
Shares of AMD jumped more than 6% to occupy the top slot on Yahoo Finance’s Trending tickers page on Monday as chip stocks soared on reports that that the Trump administration may limit some industry-specific tariffs that were expected to take effect on April 2, including those on cars and chips.
Tesla (TSLA)
Tesla shares surged more than 10% on Monday as the markets ripped higher on hopes of narrower-than-expected tariffs from the Trump administration and optimism over the EV maker’s Full Self-Driving software in China.
On Monday, Tesla said it plans to activate its Full Self-Driving software in China once it receives official regulatory approval.
23andMe (ME)
Genomics company 23andMe filed for Chapter 11 bankruptcy protection in a bid to sell the company, while also announcing the resignation of its CEO, Anne Wojcicki, following failed takeover bids.
Shares of 23andMe tanked more than 50% to just below $1.
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Trump world cheers markets with talk of narrowing April 2 tariffs to the ‘dirty 15’
Yahoo Finance’s Ben Werschkul reports:
Read more here.
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Oil jumps to session high after Trump announces 25% tariffs on any country that buys oil, gas from Venezuela
Oil jumped to a session high on Monday morning after President Trump announced tariffs on imports from any country that buys oil or gas from Venezuela.
West Texas Intermediate (CL=F) jumped more than 1% to a session high, while Brent (BZ=F) also climbed about 1%.
In a social media post, the president wrote, “any Country that purchases Oil and/or Gas from Venezuela will be forced to pay a Tariff of 25% to the United States on any Trade they do with our Country” starting on April 2.
The Trump administration is imposing what it calls a “Secondary Tariff” on Venezuela “for numerous reasons,” stating the country has “sent to the United States, undercover, tens of thousands of high level, and other, criminals, many of whom are murderers and people of a very violent nature.”
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Tesla surges 10% as tariff worries ease
Tesla (TSLA) outperformed the rest of the “Magnificent Seven” stocks on Monday as shares of the EV maker surged 10% amid optimism about an easing in US tariff plans.
Reports that President Trump will hold off on imposing levies on the auto sector on April 2 eased worries that Tesla’s results would be impacted. The stock has already been on a downtrend amid concerns about a drop in sales and a backlash against the brand due to CEO Elon Musk’s involvement in politics.
The stock began digging itself out of its most recent dip last week after Tesla revealed plans to launch its robotaxi service in 2025.
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.
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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.
