The Dow Jones Industrial Average soared 597.97 points, or 1.42%, to end at 42,583.32 on Monday. The S&P 500 gained 1.76% to close at 5,767.57, while the tech-heavy Nasdaq Composite increased 2.27% to settle at 18,188.59. Stocks, which had fallen for nine consecutive weeks, saw a significant rebound, with some climbing more than 3%.
Investors remain cautious about a potential rise in inflation and a looming recession as the April 2 start date for Trump’s reciprocal tariffs approaches. However, sentiment appears to have improved following reports that the tariffs could be more narrowly focused and that sector-specific duties might be delayed. Trump indicated late Monday afternoon that he might offer “a lot of countries” exemptions from the reciprocal tariffs.
Despite this, he confirmed that tariffs on sectors like pharmaceuticals and autos would still be implemented in the near future, though not as part of the early April rollout. “Market conditions are improving dramatically as the angst around reciprocal tariffs is diminishing,” said Charlie Ripley, senior investment strategist at Allianz Investment Management. “From a risk standpoint, escalation or retaliation has always been a concern, but should the administration adopt a more targeted and strategic approach to tariff implementation, the risks of a full-blown trade war are reduced.”
In recent weeks, recession fears have been exacerbated by market volatility.
Stocks began to tumble in late February, with the S&P 500 briefly entering correction territory. Trump’s comments on Friday about potential flexibility in his tariff plan helped push the major indices into positive territory for the session, allowing the S&P 500 to avoid a fifth consecutive losing week. Shares of Oklo surged over 13% after the company announced that the Nuclear Regulatory Commission (NRC) would begin assessing its license application readiness later this month.
Oklo seeks to construct and operate its first advanced microreactor at the Idaho National Laboratory.
Markets rally on potential tariff changes
This review will enable NRC staff to familiarize themselves with Oklo’s materials before the full application is submitted.
CEO Jacob DeWitte stated, “We continue making progress towards obtaining commercial licenses for next-generation nuclear technologies.”
Consumer discretionary stocks, which have underperformed in 2025, led the S&P 500 on Monday, marking their best day since November 2023. The sector, tracked by the Consumer Discretionary Select Sector SPDR Fund (XLY), rose by 3.7%, marking its best daily performance since November 14, 2023. Despite these gains, the sector remains about 15% below its 52-week high from mid-December and over 9% down for the year.
Electric vehicle stocks, which had been on a nine-week losing streak, climbed over 10%, achieving their best performance since November 2024. Pinterest shares rose by 4.5% following an upgrade from Guggenheim. Analyst Michael Morris upgraded Pinterest to a “buy” rating from a “neutral” one.
Despite an 8% decline this month, the stock remains over 17% up this year. Morris believes that the recent share price drop presents a buying opportunity, predicting that user monetization and profit growth will exceed market rates from 2025 to 2027, driven by AI-enabled advertising performance. Palantir Technologies saw another day of significant gains, rising more than 5% on Monday after a 4% rise on Friday.
If sustained, this would mark the defense tech stock’s first consecutive 4% gains since early November. Palantir has risen over 26% this year, although it remains well below its record close. The Treasury Department granted Chevron an extension to continue oil production in Venezuela until May 27, following Trump’s reversal of a previous decision by the Biden administration.
The extension allows Chevron more time to wind down its operations in the country.
