4:16pm: Rate concerns take backseat
Wall Street surged on Monday, with the Nasdaq leading the gains as technology stocks powered a broad market rally. Investors shrugged off concerns about interest rates as optimism around corporate earnings and economic resilience fueled risk appetite.
The Dow Jones climbed 598 points, or 1.4%, to close at 42,583. The S&P 500 rose 100 points, or 1.8%, to end at 5,768, while the Nasdaq Composite jumped 405 points, or 2.3%, to 18,189.
Technology and growth stocks led the charge, with investors betting on strong earnings momentum and easing inflationary pressures. The market’s gains followed a recent stretch of volatility, as traders assessed the Federal Reserve’s next policy moves and the potential for rate cuts later this year.
3:56pm: Hard details
A series of new or higher tariffs are scheduled to take effect next week.
April will bring some "hard details" about tariffs amid the current uncertainty, according to analysts at Wells Fargo.
"At some point, tariff threats that are repeatedly extended become less effective," analysts commented.
"This raises the odds that tariffs are more than posture and indeed are on track to becoming actual policy, though questions remain on the sheer feasibility of imposing such broad tariffs so quickly."
3:35pm: Flexibility on tariffs
President Trump has signaled potential flexibility in the implementation of his reciprocal tariffs, set to take effect on April 2.
Trump suggested that "a lot of countries" might receive breaks, indicating a possible softening of the administration's stance. Recent reports have hinted at a narrower approach, focusing on the 15 countries with what Trump’s administration considers unfavorable trade balances with the US.
In a significant development, Trump announced a "secondary tariff" on Venezuela, also effective April 2. Any country purchasing oil or gas from Venezuela will face a 25% tariff on their trade with the US.
Trump also mentioned upcoming announcements on additional tariffs for autos, lumber, and chips. The president's recent statements suggest a potentially more nuanced approach to trade policy, but significant uncertainty remains regarding the extent and implementation of these measures.
2:45pm: Monday's headlines
DNA testing firm 23andMe (NASDAQ:ME) has filed for bankruptcy protection in the US, marking the collapse of one of the most high-profile names in consumer genetics.
Shares of Azek surged 13.5% on Monday after the US artificial decking maker agreed to be acquired by Australia’s James Hardie Industries in an $8.75 billion deal.
Lightspeed Commerce Inc (TSX:LSDP, NYSE:LSDP) shares moved lower after the Montreal-based commerce platform trimmed its full-year revenue outlook. The company said that since reporting its Q3 fiscal 2025 results on February 6 that macroeconomic conditions have deteriorated.
Hyundai is set to announce a $20 billion investment in the United States to expand its manufacturing footprint.
1:45pm: Softer USD
The US dollar weakened at the start of the week amid uncertainty over global trade policy and concerns about its impact on economic growth.
Investors are focused on upcoming GDP data, which could influence sentiment and the dollar’s trajectory. Weaker data may fuel growth concerns, while stronger figures could support a rebound, according to Konstantinos Chrysikos Head of Customer Relationship Management at Kudotrade.
"The release of GDP growth data later this week could affect sentiment as traders reassess the trajectory of the economy and the potential impact of tariffs, in particular after the Federal Reserve revised its projections down," Chrysikos commented.
"Softer data could reignite growth concerns and reinforce downside risks for the currency in the short term, while stronger-than-expected figures could help the dollar rebound."
Meanwhile, US Treasury yields may rise as investors seek safe-haven assets and adjust expectations for interest rate cuts.
12:41pm: Stocks fly high
Stocks continued to surge on Monday as reports suggested the Trump administration might scale back planned tariffs.
The S&P 500 gained 1.7%, the Nasdaq rose 2.1%, and the Dow added 1.4%, extending a market rebound. Investor sentiment improved after reports that certain sectors and countries might be exempt from tariffs set for April 2.
Tech stocks rallied, with Tesla soaring 9%, Nvidia up 3.5%, and Amazon and Meta each rising about 3%. AI-related stocks like Palantir and AppLovin gained 5.5% and 7.5%, respectively. Bitcoin hit $88,200, boosting MicroStrategy shares 7%.
Elsewhere, oil prices rose, while gold dipped slightly. The 10-year Treasury yield climbed to 4.33%.
12:05pm: Gold holds steady
Gold held steady on Monday after a minor pullback, as traders weighed geopolitical and trade tensions.
Hopes for a cease-fire in Eastern Europe could pressure prices, while rising tensions in the Middle East may provide support.
Ongoing trade policy uncertainty, particularly tariff concerns, remains a key factor influencing gold, according to Inki Cho, Financial Markets Strategist Consultant to Exness.
"The lack of clarity around US trade policy could continue to unsettle markets," Cho commented.
"Any escalation in trade tariffs could amplify economic risks which would likely benefit the bullion. Meanwhile, attention shifts to this week’s US GDP growth data, which may offer critical insights into the direction of the US economy."
11:05am: 'Liberation Day'
The US administration has set April 2 as a key date for potential trade policy announcements, with President Trump calling it "Liberation Day."
Since the initial trade policy memo, tariffs have been imposed on Chinese imports (20%), non-USMCA goods from Canada and Mexico (25%), Canadian energy (10%), and steel and aluminum (25%), with additional sector-specific tariffs proposed.
A previous reciprocal tariff plan may be evolving into a simpler structure, as its complexity and limited revenue impact (~$46 billion) made it less viable. Meanwhile, newly appointed U.S. Trade Representative Jamieson Greer, a proponent of stricter trade enforcement, is expected to play a key role in upcoming trade actions.
"President Trump has begun calling April 2, Liberation Day, likely to symbolize freeing the US from its trade deficits and its workers from seemingly unfair trade competition," UBS analysts commented.
"Because of the attention President Trump has drawn to April 2, presumably something is going to happen. The hard part is trying to figure out what precisely that might be.
"The reality is we do not know, but we take a stab at what some announcements look like. Logically the actions should include and start with trading partners with large goods deficits. Otherwise, what's the point?"
10:31am: Week ahead
Entering the final trading week of March, investors are weighing signals from the Federal Reserve, upcoming trade policy changes, and key economic data releases.
Key data releases this week include consumer sentiment readings on Tuesday, durable goods orders on Wednesday, and the latest figures for personal income and consumption on Friday.
The core Personal Consumption Expenditures (PCE) deflator, the Fed’s preferred inflation gauge, is expected to rise 0.37% month-over-month, pushing the annual rate to 2.8%. If inflation continues to surprise on the upside, it could complicate the Fed’s timeline for rate cuts.
And, with the Trump administration set to announce reciprocal tariffs on April 2, global markets remain on edge.
If uncertainty persists, the impact could be significantly larger. Recent trade data suggest an uptick in imports, particularly pharmaceuticals from Ireland, as companies brace for potential disruptions.
9.47am: Nasdaq tech giants power gains
US stocks have opened higher and those positive vibes have emanated over to London's blue chips, which have popped back into positive territory.
Silicon Valley tech giants are leading the way, with Nvidia, Amazon and Meta all up more than 2%, with Tesla topping the lot with a 5.3% bounce to continue its drive higher seen in the latter half of last week.
Not surprisingly therefore, the Nasdaq Composite is marching at the head of the parade, climbing 1.6%, with the S&P 500 rising 1.4% and the Dow Jones 1.1%.
Near the top of the S&P leaderboard are ON Semiconductor, up 4%, while Nucor and Boeing are up over 3%.
8.30am: Nasdaq and S&P climb on tariff dealmaking hints
US futures were strong ahead of the first trading session of the week, while bitcoin surged to its strongest level in over two weeks.
Nasdaq 100 futures were up 1.5% with just over an hour until the opening bell, while S&P 500 futures were up 1.2% and the Dow Jones up 0.9%.
This follows a session at the end of last week where stocks wallowed underwater until a late rally, though this still left the S&P and Nasdaq Composite in the red over the week.
Futures on Monday are factoring in an apparent "softening" in President Trump’s tariff threats, said market analyst David Morrison at Trade Nation.
"Trump said he would be in touch with Chinese Premier Xi Jinping this week. The news has raised some hopes of a deal being reached ahead of the imposition of US retaliatory tariffs against its trading partners due next week."
The US dollar sold off in early trade, but is back to flat, while oil prices are up around 0.5% and gold is just above flat.
Bitcoin is trading at its highest level in over two weeks, climbing above $87K.
"Chart wise, it looks as if Bitcoin has managed to consolidate and build a bit of a base to push higher," says Morrison, with a similar story seen with Ether.
In company news, DNA testing firm 23andMe (NASDAQ:ME) filed for Chapter 11 bankruptcy protection, marking the collapse of one of the most high-profile names in consumer genetics.
The company said it will continue operating while it seeks a buyer, but potential personal privacy issues have been raised as the company has tested more than 15 million people’s genetic makeup using mail-in kits.
The company said that data privacy would be an “important consideration” but added that it was seeking to “maximise the value of its assets”.
Privacy advocates have urged consumers to delete their data held by the company as it could be sold off to data brokers or to target adverts.