U.S. stocks closed sharply higher Monday, with the S&P 500 jumping 1.7% as easing trade concerns lifted market sentiment. The Dow Jones Industrial Average rose 597 points (1.4%), and the tech-heavy NASDAQ soared 2.3%, marking a strong rebound after weeks of tariff-driven declines.
The market bounce followed reports from Bloomberg and the Wall Street Journal suggesting that President Trump's upcoming tariff plans will be narrower than feared. Rather than sweeping sectoral tariffs, the U.S. is expected to impose limited reciprocal duties affecting around 15 countries. This development offered investors hope that the economic impact of the trade measures will be less severe than initially anticipated.
Despite relief, analysts warn of lingering risks. “Targeted is better than broad, but trade changes still pose downside risks to growth and profits,” noted Vital Knowledge.
The recent volatility was triggered by fears that aggressive tariffs could fuel inflation, disrupt global trade, and slow U.S. growth. Major indices hit six-month lows earlier in the month.
Investors now turn their attention to upcoming comments from Federal Reserve officials and key economic data, including the March purchasing managers index, a GDP revision, and the Fed’s preferred inflation gauge — the personal consumption expenditures (PCE) index. The Fed is expected to hold rates steady, as sticky inflation limits room for cuts.
Corporate earnings also remain in focus, with reports due from Dollar Tree and Lululemon.
On the corporate front, Tesla surged 12% after weeks of losses, while 23andMe plunged 59% after filing for Chapter 11 bankruptcy. Nvidia rose 3% on eased tariff concerns. Meanwhile, James Hardie fell 17% following an acquisition deal, and Gold Fields dropped 5% after its takeover offer was rejected.


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