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The stock market is cheering as Trump could soften tariffs
Investors pushed US stocks up on Monday morning as they cheered news that President Donald Trump could soften reciprocal tariffs scheduled to kick in on April 2.
Trump's planned "Liberation Day" on April 2, which was expected to see sweeping reciprocal tariffs go into efffect, will be more targeted than previously believed, Bloomberg and The Wall Street Journal reported. Some nations will be excluded and sector-specific tariffs will not be announced for now.
The news has helped revive investor enthusiasm to start the week, with the S&P 500 and Nasdaq Composite surging more than 1% and the Dow Jones Industrial Average rising more than 400 points.
Some of the top tech stocks that have suffered in the past week, such as Tesla and Nvidia, were among Monday's biggest gainers.
Here's where major indexes stood shortly after the 9:30 a.m. ET opening bell on Monday:
Bond yields climbed as investors leaned back toward risk-on. The 10-year Treasury yield rose over four basis points to 4.296%.
The news of narrower tariffs is welcomed by the market, but investors have reason to remain cautious. This year has already seen huge volatility sparked by the Trump administration's back-and-forth tariff policy .
Since taking office, Trump has shifted his approach to tariffs multiple times, causing stocks to swing wildly. Tariffs on Canada and Mexico were first announced at the start of February, before being delayed by a month. Even when the levies went into effect in early March, a wider exemption was implemented days later.
The confusion has been the major reason indexes have entered correction territory this month, with investors navigating deep uncertainty around trade policy and fleeing to safe havens like Treasurys and gold to wait out the volatility.
Read the original article on Business Insider