Stocks rallied higher Monday following reports that President Donald Trump is planning to narrow the scope of some tariffs initially planned to roll out on April 2, boosting market growth sentiment. The Dow Jones Industrial Average surged more than 580 points higher, while the S&P 500 Index climbed about 1.8% and Nasdaq Composite advanced roughly 2.3%.
Here's how the market settled on Monday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Trump has said previously that the U.S. will levy duties on any country that imposes tariffs on U.S. imports on April 2, which he has called, "Liberation Day." However, new reports from the Wall Street Journal and Bloomberg News say that the tariffs will likely exclude some industry-specific duties and possibly some nations. Both reports also claim that the tariff orders could be subject to change.
"Omitting the sectoral tariffs from the April 2nd package significantly reduces both its aggregate scale and the maximum rate on targeted sectors, given that all of Trump's tariffs to date have been designed to stack," wrote Tobin Marcus, head of U.S. policy and policies at Wolfe Research, in a note, quoted by CNBC. "The ceiling for reciprocal tariffs on April 2 remains dramatic, and we still expect a negative markt reaction, but the scale won't be as severe and the sectoral impacts won't be as concentrated."
Still, the looming tariffs and overall uncertainty surrounding the Trump administration's trade policies has soured broader market outlooks in recent weeks. The S&P 500 sits near 8% off its record high after falling into correction territory several sessions ago, referring to an index declining at least 10% below its record. The Nasdaq also remains in correction, and is currently about 12% off its record.
On Monday, Trump said the U.S. will impose 25% tariffs on countries that buy oil and gas from Venezuela. These tariffs will take effect on April 2, the president said in a post on his social media platform Truth Social. Venezuela exported about 660,000 barrels per day in 2024, according to data from Kpler and viewed by CNBC. The largest imported on the South American nation's crude exports is China, who purchased about 270,000 barrels per day last year.
"If they buy their oil from Venezuela, they have to pay a 25% tariff to do business with the United States -- that's on top of existing tariffs," Trump told reporters during a press conference at the White House on Monday.
The U.S. Treasury Department announced Monday it has extended Chevron's
On the Economic Front:
U.S. Services Activity rose higher in March, while U.S. Manufacturing Activity broadly lagged, the S&P Global reported Monday, as the sectors begin to respond to higher price inflation from the impact of the Trump administration's trade policies.
The firm's flash services index came in at a better-than-expected reading of 54.3 for the month, up from February's reading of 51. The flash manufacturing index, meanwhile, declined by February's print of 52.7 to a reading of 49.8. Readings below the neutral level of 50 indicate contraction in a sector.
"Input price inflation accelerated sharply, especially in manufacturing, to a near two-year high, often attributed to the impact of tariff policies. However, competition limited the pass-through of higher costs to selling prices," the S&P Global said in a statement.
