Auto dealers face uncertainty as tariff hikes loom
Stocks jumped in early trading Monday on reports that Trump administration tariffs set to take effect on April 2 could be narrower than previously expected.
The S&P 500 rose 81 points, or 1.4%, to 5,749 as of 10:14 a.m. EST, the Dow Jones Industrial Average, jumped 506 points, or 1.2%, and the Nasdaq Composite climbed 334 points, or 1.9%.
A White House official told AFP that planned levies on the automobile, semiconductor and other industries “may or may not happen April 2,” noting that the situation is “still fluid.”
So-called reciprocal tariffs President Trump threatened to slap on other countries to match what they charge on U.S. imports are still expected to take effect, the official said.
Financial markets have slumped this year on concerns that the Trump administration’s aggressive use of tariffs could torpedo U.S. economic growth and boost inflation.
“Markets opened in a bit of a risk-on mood overnight. U.S. equity index futures gained from the outset, finding support from recent reports that President Trump’s promised tariffs may be more targeted than he has previously stated,” said John Canavan, lead U.S. analyst with Oxford Economics.
The S&P 500 rose 0.5% last week, the index’s first weekly gain since Feb. 14.
Citing the potential impact of tariffs, the Federal Reserve earlier this month lowered its outlook for economic growth to 1.7%, down from its December forecast of 2.1%, while forecasting hotter inflation this year.
This week’s calendar is relatively light on events likely to move markets. On Tuesday, investors will zero in on a closely watched gauge of consumer confidence. The Conference Board, which represents large U.S. companies, in February reported the sharpest decline in its consumer sentiment index in more than four years.
Spending by Americans accounts for roughly two-thirds of economic activity, so rising pessimism among consumers and businesses can weigh on growth.
Wall Street on Thursday will also scrutinize the latest jobless claims data for signs that mass federal layoffs ordered by the Trump administration are affecting the labor market.
AFP contributed to this report.
Alain Sherter is a senior managing editor with CBS News. He covers business, economics, money and workplace issues for CBS MoneyWatch.
