U.S. stocks rallied on Monday as investors reassessed the risks surrounding the Trump administration’s shifting trade policies. The S&P 500 and Nasdaq both climbed over 1.7%, while the Dow Jones Industrial Average surged by 550 points, buoyed by renewed optimism that the worst of the tariff impact may be avoided in the near term.
US stocks start week sharply higher
The rally followed the White House’s decision to pause aggressive tariffs on computers and electronics—part of a broader reciprocal tariff package—providing temporary relief to tech and hardware companies. While President Trump later clarified that this exemption was short-term, with sector-specific tariffs on semiconductors and computers expected soon, the delay gave markets a brief reprieve from escalating trade tensions.
Investors latched onto hopes that tariffs on Chinese electronics might be softer or more targeted than initially feared, providing support for major companies reliant on Chinese manufacturing. Apple jumped 7%, leading gains among tech giants, while Tesla and Nvidia each added 3%. Other supply chain–sensitive firms also saw gains, as easing fears helped offset recent volatility caused by the unpredictable trade policy environment.
Rebound extended beyond tech
The broader rebound extended beyond tech. On the earnings front, Goldman Sachs rose 2.5% after reporting strong quarterly results, helping boost financials. Despite the rally, markets remain on edge, with volatility expected to persist as further trade announcements from the administration loom and investors await guidance from upcoming corporate earnings and economic data.
