US stocks climbed on Monday following President Donald Trump’s announcement of exemptions for tariffs on electronics imported from China. The Dow surged 312 points, or 0.78%, while the S&P 500 and Nasdaq Composite also saw gains of 0.79% and 0.64%, respectively. Despite a volatile day of trading, all three major indexes closed higher.
Investor sentiment was initially positive as stock indexes opened higher, but some gains were lost as tech stocks lost momentum. The Nasdaq fluctuated throughout the day, eventually making gains. Both the Dow and the S&P 500 briefly dipped midday before rebounding in the afternoon.
Over the weekend, US stock futures rose after news of tariff exemptions for electronics from China. These exemptions come after Trump imposed tariffs on imports from China, although they do not apply to certain products related to the fentanyl trade. Apple shares saw a 2.2% increase on Monday.
However, there remains uncertainty surrounding the trade war with China, with Commerce Secretary Howard Lutnick indicating that the exemptions for electronics are temporary. Meanwhile, Trump suggested a possible short-term tariff exemption for automakers, leading to surges in shares of Ford, Stellantis, and General Motors.
The positive momentum in US stocks mirrored gains in overseas markets, with Europe and Asia also seeing increases. Additionally, survey data from the New York Federal Reserve reflected growing consumer pessimism about the economy’s short-term outlook, particularly regarding inflation expectations.
US stocks have experienced significant volatility in recent weeks due to shifts in trade policies, with Trump’s tariff announcements leading to sharp market fluctuations. Despite the uncertainty, the stock market rebounded in the second week of April after a challenging start earlier in the month.
In recent history, a surge in the market followed Trump’s announcement of a 90-day pause on most “reciprocal” tariffs. Despite this increase, the S&P 500 is still below its closing level on April 2, just before the initial announcement of these tariffs. UBS analysts noted the ongoing uncertainty in the market since the recent developments, stating that the 90-day pause on tariffs and electronics tariff reprieve may lead to further recovery in tech shares.
The outlook for Wall Street remains uncertain, as traders struggle to navigate Trump’s trade policies. The lack of clarity has raised concerns about US economic growth, with Morgan Stanley analysts highlighting the potential negative effects of prolonged uncertainty on business spending and hiring.
Goldman Sachs CEO David Solomon expressed concerns about the current economic climate, citing a higher risk of recession. Billionaire Ray Dalio also warned of a potential recession or worse due to the impact of tariffs. Citi analysts reduced their year-end target for the S&P 500 and highlighted the prevailing uncertainty in the market.
Investors are closely watching the Treasury market, which experienced significant volatility last week. US Treasuries slightly gained stability, while the US dollar weakened amid investor confidence concerns. Oil prices remained relatively stable, with global demand growth forecasts slightly lowered by OPEC due to tariff impacts.
In summary, the market remains uncertain and investors are closely monitoring various economic indicators for further insights.
Gold prices fell by 0.8% on Monday following a surge to a record high of $3,200 per troy ounce on Friday. The precious metal has experienced a remarkable increase of over 21% this year, driven by investors seeking safe-haven assets. On Friday, analysts at Goldman Sachs raised their year-end price projection for gold to $3,700, reflecting the strong demand for gold amid economic instability. CNN reporters Auzinea Bacon, Anna Cooban, and John Liu provided this information. Visit CNN.com to stay updated with more news and newsletters by creating an account.
