The Dow Jones Industrial Average surged nearly 600 points on Monday as investors grew optimistic that President Donald Trump may soften his stance on wide-ranging tariffs. The Dow ended the session 597.97 points, or 1.42%, higher at 42,583.32. The S&P 500 added 1.76% to close at 5,767.57, while the tech-heavy NASDAQ gained 2.27% to settle at 18,188.59.
Reports suggest that the tariffs could be more narrow in scope and that sector-specific duties are expected to be delayed. Trump stated late Monday afternoon that he might give “a lot of countries” breaks on reciprocal tariffs. He also mentioned that levies on sectors such as pharmaceuticals and autos would still be coming in the “near future,” confirming they would not be part of the early April rollout.
Charlie Ripley, senior investment strategist at Allianz Investment Management, said, “Market conditions are improving dramatically as anxiety around reciprocal tariffs is somewhat diminishing. From a risk standpoint, escalation or retaliation has always been a concern. But should the administration come through with a more targeted and tactical strategy around tariff implementation, risks of a full-blown trade war are reduced.”
In recent weeks, recession concerns were exacerbated by market volatility.
Stocks had rapidly fallen starting in late February, with the S&P 500, at one point, closing in correction territory.
Optimism boosts market recovery
Trump on Friday told reporters that there could potentially be “flexibility” for his reciprocal tariff plan, which helped push major averages into the green for the session and resulted in the S&P 500 avoiding a fifth straight losing week.
Consumer discretionary stocks, which had been the worst-performing sector of 2025, led the S&P 500 on Monday. The sector experienced its best day since November 2023. The Consumer Discretionary Select Sector SPDR ETF (XLY) was higher by 3.7%, on track for its best daily performance since November 14, 2023, when it gained 3.37%.
Despite the gains, the sector remains down more than 9% this year. Pinterest shares popped 4.5% following an upgrade from Guggenheim. Analyst Michael Morris upgraded Pinterest to buy from neutral, noting the recent pullback in the image-sharing platform as a buying opportunity.
Despite sliding more than 8% this month, the stock is still higher by more than 17% this year. The Treasury Department on Monday granted Chevron an extension to pump oil in Venezuela until May 27. This decision comes after President Trump indicated that countries purchasing crude from Venezuela would not be penalized under U.S. sanctions.
Previously, the Treasury Department had required companies to wind down operations in the country.
