The S&P 500 rose sharply to end at its highest in over two weeks on Monday, lifted by Nvidia and Tesla following signs that the Trump administration might take a more measured approach on tariffs against US trading partners.
The Dow Jones added 1.42%, to 42,583.32.
The S&P 500 gained 1.76% and closed at 5,767.
The tech-heavy Nasdaq rose 2.27% to settle at 18,188.
US President Donald Trump had anticipated applying broad levies starting on April 2 but a set of sector-specific tariffs is now likely to be excluded, according to media reports over the weekend citing administration officials.
A Trump administration official on Monday cautioned that the situation was fluid and no final decisions had been made.
Investors scooped up battered technology shares, with Nvidia up 3.1% and Advanced Micro Devices gaining 11.9% both rallying.
Tesla gained 11.9%, recovering some of its recent steep decline, helped by optimism about scaled back US tariffs.
Financial markets have been volatile in recent weeks due to fears of inflation and an economic downturn after Trump announced a series of tariffs last month on major US trading partners, including China, Mexico and Canada.
The S&P 500 has recovered about 4% from its recent low on March 13, and it remains down around 6% from its February 19 record high clo
“Investors are experiencing a slight sigh of relief, but at the same time they are cynical about how long this may last,” Sam Stovall, chief investment strategist at CFRA Research, told Reuters.
“The causes of this manufactured correction have not evaporated. They are tariffs and what the impact of tariffs could be on economic growth, inflation and corporate profits.”
– with Reuters
