As investors assess potential changes to upcoming tariffs, markets respond with significant gains
US stocks closed higher Monday as investors assessed the possibility of changes to President Donald Trump’s proposed tariffs.
The Dow Jones Industrial Average rose 597.97 points, or 1.42%, to 42,583.32.
The S&P 500 climbed 1.76% to 5,767.57, while the Nasdaq Composite gained 2.27% to 18,188.59.
Tesla shares advanced nearly 12%, rebounding from a prolonged decline.
Meta Platforms and Nvidia each increased by more than 3%.
CNBC reported that investor sentiment shifted as discussions emerged about a potential narrowing of the scope of tariffs set to take effect April 2.
Market Response to Trade Policy Signals
Some sector-specific tariffs, initially expected to roll out in early April, may be delayed based on indications from officials and industry sources.
Trump said Monday that some countries could receive exemptions, while duties on industries such as pharmaceuticals and automobiles would be implemented later.
Charlie Ripley, senior investment strategist at Allianz Investment Management, told CNBC that uncertainty around trade measures had contributed to market swings. Any adjustments in policy could influence expectations for economic growth and inflation.
Economic concerns had pressured stocks in recent weeks, with the S&P 500 briefly entering correction territory.
On Friday, Trump suggested that flexibility in tariff enforcement remained possible, leading major indexes to recover.
Sector and Corporate Developments
Consumer discretionary stocks led gains, with the sector rising 3.7%—its strongest performance since November 2023.
Tesla added more than 10%, ending a nine-week losing streak. Deckers Outdoor, Ralph Lauren, Darden, and Royal Caribbean each gained around 4%.
Oklo shares rose 13% after the Nuclear Regulatory Commission announced a pre-application assessment of its microreactor project in Idaho. CEO Jacob DeWitte said the company continues working toward commercial licensing.
Pinterest shares climbed 4.5% following an upgrade from Guggenheim.
Analyst Michael Morris described the recent decline as a buying opportunity and raised the price target to $40.
Trade and Energy Policy Updates
The US Treasury Department extended Chevron’s license to operate in Venezuela until May 27.
Trump separately announced a 25% tariff on US trade with countries purchasing Venezuelan oil, set to take effect April 2.
CNBC reported that Venezuela exported 660,000 barrels per day in 2024, with China receiving 270,000 barrels per day.
Brent crude futures rose 0.85% to $72.77 per barrel, while US West Texas Intermediate crude climbed 0.86% to $68.87 per barrel.
Economic Indicators and Small-Cap Stocks
S&P Global’s March report showed service-sector activity expanding, with a reading of 54.3, while manufacturing fell to 49.8.
CNBC noted that manufacturers cited rising input costs due to tariff concerns.
Bitcoin topped $87,000 amid speculation about potential trade policy adjustments.
Coinbase and MicroStrategy shares each gained over 3%, while Core Scientific, Mara Holdings, and CleanSpark rose 4%.
Small-cap stocks outperformed, with the Russell 2000 gaining 2%. Despite Monday’s rise, the index remains 15% below its November 2024 high.
