Dow, S&P 500 rally on hopes of softer US tariff stance; Tesla and AZEK surge, tech stocks gain

Hopes that the US will avoid a full-scale trade war lifted stocks on Monday, following reports that President Donald Trump may postpone some of his planned tariffs.

As of writing, the S&P 500 had gained 1.7%, the Dow Jones Industrial Average was up 1.4%, and the Nasdaq Composite surged 2.2%.

Tesla soared more than 9%, extending Friday’s rally and snapping a nine-week losing streak. Meta and Nvidia also climbed over 3%.

With Trump’s reciprocal tariffs set to take effect on April 2, investor concerns about a potential slowdown in US economic growth remain high.

Positive developments

“The positive start was helped by a more conciliatory tone from President Trump concerning existing tariffs, and those threatened in the future,” said David Morrison, senior market analyst at Trade Nation. 

The US had threatened to impose reciprocal tariffs, which are scheduled to take effect early next month.

These tariffs are among the issues that President Trump plans to discuss with Chinese President Xi Jinping this week.

“It also appears that reciprocal tariffs are unlikely to be as ‘random’ and ‘scattergun’ as they first appeared. Markets have steadied somewhat following a near month-long sell-off which saw both the S&P 500 and NASDAQ drop into correction territory (defined as a fall of 10% or more from a recent high),” Morrison said. 

Federal Reserve Chair Jerome Powell offered some reassurance to investors last week, stating that any potential adverse effects from Trump’s tariffs would likely be temporary.

The Fed also announced that beginning in April, it would reduce its monthly sales of Treasuries from $25 billion to $5 billion, thereby slowing the runoff of its balance sheet.

Morrison added:

This will take pressure off the bond market, although the real benefit is the message it sends to market participants. Overall, the Fed was perceived as being more dovish than expected.

Tech stocks like Meta, Nvidia, and AMD rise

Tech stocks experienced a resurgence on Monday, offering a glimmer of hope after a period of decline. 

Among the gainers, Tesla’s stock, which had been on a nine-week losing streak, saw a near 10% increase.

This positive movement signaled a potential shift in investor sentiment towards the electric vehicle manufacturer.

Other prominent tech companies also joined the upward trend.

Meta and Advanced Micro Devices both saw their shares rise by 3% and 7% respectively, indicating renewed confidence in their prospects. 

Similarly, NVIDIA experienced a 3.7% gain, suggesting that investors were optimistic about the chipmaker’s ability to navigate the current market conditions.

The positive momentum extended to other tech giants as well. Apple, Amazon, and Google parent Alphabet all saw their shares rise in premarket trading. 

This broad-based rally indicated that the tech sector as a whole was experiencing a rebound, potentially driven by a combination of factors such as positive earnings reports, favorable economic indicators, and renewed investor interest.

Pinterest shares jump

Pinterest, a social media platform that allows users to discover and share visual content, experienced a surge in its stock price. 

The stock rose by almost 5% following an upgrade to “buy” from “neutral” by analysts at Guggenheim. 

This upgrade signifies increased confidence in Pinterest’s future performance and potential for growth.

Meanwhile, AZEK’s shares surged 23% following the announcement that James Hardie Industries, a cement manufacturer, would acquire the outdoor products manufacturer in a cash and stock deal valued at approximately $9 billion.