FX.co ★ Wall Street Rallies on Tariff Hopes

On Monday, U.S. stocks experienced a significant surge, fueled by growing optimism that the Trump administration might pursue a more focused strategy concerning tariffs, thereby alleviating fears of a comprehensive trade war. The S&P 500 rose by 1.8%, achieving a two-week peak, while the Nasdaq 100 increased by 2.1%, and the Dow Jones advanced by 597 points. Leading the gains were technology stocks, with Nvidia and AMD increasing by 3.1% and 7% respectively. Tesla saw a remarkable 11.9% jump after a series of declines. Amazon rose by 3.6%, and Alphabet appreciated by 2.1%. Reports suggested the possibility of the administration exempting certain sector-specific tariffs from the planned April 2 rollout; however, officials noted that these decisions were not yet finalized. Investors responded positively to the potential policy change, which comes after weeks of market instability driven by fears of a recession and sluggish consumer confidence. Concurrently, preliminary PMI figures revealed unexpectedly robust growth in the services sector, contrasted by a contraction in manufacturing, where input costs surged as a result of tariffs.