Wall Street surges as Trump hints at tariff relief
The Monday session on Wall Street ended with substantial gains in the main indexes. Optimism returned to the market as Donald Trump may refrain from implementing some tariff plans, potentially allowing the US to avoid an economic slowdown caused by the prolonged trade war.
The Dow Jones Industrial Average rose by 1.42% at the close, reaching 42,583 points. The S&P 500 gained 1.76% by the end of the day, amounting to 5,768 points. The Nasdaq Composite increased by 2.27% to 18,189 points, while the VIX volatility index decreased by 9.34% to 17 points.
Markets strongly upward
Tesla shares, which had been falling for nine consecutive weeks, rose by nearly 12%. Meta Platforms and Nvidia both rose by over 3%.
Investors remain uneasy about potential inflation increases and a recession ahead of Trump’s mutual tariff implementation date, set for 2 April.
However, sentiment seems to be improving following reports that the tariffs may have a narrower scope and that sectoral tariffs are expected to be delayed. This was reported by Bloomberg News and The Wall Street Journal.
Trump said on Monday late afternoon that he may give many countries a break on the mutual tariffs. He also told the press after a cabinet meeting that tariffs on sectors like pharmaceuticals and automotive would still apply in the near future, essentially confirming they would not be part of the package introduced at the beginning of April.
The market reacts to Trump’s words
Charlie Ripley, senior investment strategist at Allianz Investment Management, noted that market conditions are showing clear signs of improvement as concerns over tariffs begin to ease. He acknowledged that the potential for escalation or retaliation has been a persistent risk. However, he emphasized that if the administration adopts a more precise and strategic approach to tariff implementation, the likelihood of a full-scale trade war will diminish.
The US composite PMI index, prepared by S&P Global, rose in March to 53.5 points from 50.4 points in the previous month, according to the first estimate. Analysts expected 51.5 points.
The PMI index, determining the economic situation in the US service sector prepared by S&P Global, rose in March to 54.3 points from 51 points in the previous month, according to the first estimate. Analysts expected 51.2 points.
The PMI index, determining the economic situation in the US manufacturing sector, prepared by S&P Global, fell in March to 49.8 points from 52.7 points in the previous month, according to the first estimate. Analysts expected 51.9 points.
In the oil market, WTI contracts for April are rising by 1.30% to approximately £57 per barrel, while April Brent futures are increasing by 1.26% to about 70 euros per barrel.
