Stocks Soar as Tariff Updates Drive Investor Optimism; Tesla Leads Tech Surge with 12% Jump

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Posted by NewAdmin on 2025-03-26 09:40:48 |

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Stocks surged on Monday as investors reacted to reports suggesting the Trump administration may scale back the scope of tariffs set to take effect next week.

The S&P 500 and the tech-heavy Nasdaq Composite rose by 1.8% and 2.3%, respectively, while the Dow Jones Industrial Average gained 1.4%. The market is continuing a modest recovery from a recent selloff, which had been driven by concerns over the potential impact of tariffs and economic uncertainty. Last week, all major indexes posted gains, with the S&P 500 and Nasdaq marking their first weekly increase in five weeks.

Investor sentiment received a boost following a Wall Street Journal report that the White House might exclude certain industries, such as semiconductors and automobiles, from the broader tariffs scheduled to take effect on April 2. President Trump later confirmed that industry-specific tariffs would be announced "in the very near future" and noted that some countries could be granted exemptions.

Trump's tariff proposals have raised fears that inflation could rise again and economic growth could slow. Last week, the Federal Reserve stated that while growth remains strong, the economic outlook has become more uncertain. As a result, the Fed chose to hold off on adjusting interest rates as it waits for more clarity on the effects of Trump's policies.

Shares of major tech companies soared on Monday. Electric vehicle manufacturer Tesla (TSLA), which had experienced nine consecutive weeks of losses, surged 12% to lead the S&P 500, while AI chipmaker Nvidia (NVDA), Amazon (AMZN), and Meta Platforms (META) each gained over 3%. Other tech giants, including Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOG), also saw increases, although Broadcom (AVGO) saw a slight decline.

In other tech-related moves, data analytics firm Palantir (PLTR) and marketing platform AppLovin (APP), two favorites among AI investors that had been hit hard during the recent market downturn, climbed by 6% and 8%, respectively. Chipmaker Advanced Micro Devices (AMD) saw a 7% rise.

Shares of Strategy (MSTR), formerly MicroStrategy and the largest corporate holder of Bitcoin, jumped more than 10% as the cryptocurrency gained value. Online trading platform Robinhood Markets (HOOD) and crypto exchange Coinbase Global (COIN) saw their stocks rise by 9% and 7%, respectively.

Bitcoin was trading at $88,200, up from about $84,000 late last week.

Gold futures saw a slight decline, trading at around $3,020 per ounce, while West Texas Intermediate (WTI) crude oil futures rose by 1.3%, reaching $69.15 per barrel. The yield on the 10-year Treasury note, which has dropped recently due to growing economic concerns, increased to 4.34%, up from 4.25% at the close on Friday.

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