Markets Rally Amid Signs of Tariff Relief
The S&P 500 closed at its highest level in over two weeks on Monday (March 24), boosted by a rally in technology stocks, including Nvidia and Tesla. Investors responded positively to reports suggesting that the Trump administration may scale back planned tariffs on US trading partners.
US President Donald Trump had initially proposed broad tariffs starting April 2. However, media reports over the weekend indicated that sector-specific exclusions are now being considered. A Trump administration official cautioned that no final decisions have been made, and the situation remains fluid.
Tech Stocks Lead S&P 500 Gains
Battered technology stocks saw strong gains, with Nvidia and Advanced Micro Devices surging. Tesla also rebounded after recent sharp losses, supported by optimism over a more measured tariff policy.
Financial markets have been volatile in recent weeks, driven by inflation concerns and economic uncertainty. The tariff announcements last month, which targeted major US trading partners such as China, Mexico, and Canada, added to investor anxiety.
S&P 500 Recovers, but Challenges Remain
The S&P 500 has rebounded about 4% from its recent low on March 13. However, it remains down approximately 6% from its record high on February 19.
Several companies have revised their earnings forecasts due to tariff uncertainty. According to data from LSEG, earnings for S&P 500 companies are now expected to grow by 10.5% in 2025, a 3.5 percentage point decline since the start of the year.
Key Market Figures
S&P 500: Up 1.76% (100.01 points) to 5,767.57
Nasdaq Composite: Up 2.27% (404.54 points) to 18,188.59
Dow Jones Industrial Average: Up 1.42% (597.97 points) to 42,583.32
Markets will continue to watch for further developments on tariffs and their potential impact on corporate earnings.
With inputs from Reuters
