President Donald Trump’s hints at potentially softening his stance on tariffs sent U.S. stocks soaring on Monday. The Dow Jones Industrial Average jumped nearly 600 points, or 1.42%, to close at 42,583.32. The S&P 500 rose 1.76% to finish at 5,767.57, while the tech-heavy Nasdaq Composite gained 2.27%, ending the day at 18,188.59.
Investors were encouraged by reports suggesting that the scope of the tariffs could be narrower than initially announced, with sector-specific tariffs likely to be delayed. President Trump indicated that many countries might receive breaks on reciprocal tariffs, and that tariffs on sectors such as pharmaceuticals and automobiles would come in the “near future,” rather than as part of the early April rollout. Charlie Ripley, senior investment strategist at Allianz Investment Management, said, “Market conditions are improving as the angst around tariffs diminishes.
Should the administration opt for a more targeted approach, the risk of a full-blown trade war decreases, potentially boosting U.S. growth.”
Prior to this, recession fears had been growing, with stocks sharply falling since late February, pushing the S&P 500 into correction territory.
Trump’s tariff hints calm markets
Last Friday, Trump’s suggestion of possible “flexibility” with his tariff plan helped push major averages higher and allowed the S&P 500 to avoid a fifth straight losing week.
In other market news, shares of nuclear technology company Oklo surged more than 13% after announcing that the Nuclear Regulatory Commission will begin assessing its license application for an advanced microreactor. Consumer discretionary stocks led the S&P 500 on Monday, marking their best day since November 2023, with the sector advancing 3.7%. Pinterest shares rose 4.5% following an upgrade by Guggenheim analyst Michael Morris, and Palantir stock continued its strong performance, rising more than 5%.
The U.S. Treasury Department also extended Chevron’s license to pump oil in Venezuela until May 27, with President Trump indicating that countries purchasing crude from Venezuela may continue to do so pending further decisions. As the trade landscape remains dynamic, future announcements from the Trump administration may further influence market conditions and global trading relationships. For now, investors appear to be relieved by the prospect of a more targeted and gradual implementation of tariffs.
