Get exclusive access to the White House Watch newsletter without any cost
Stay informed about the impact of the 2024 US election on Washington and the global landscape
The technology sector spearheaded a market recovery on Wall Street on Monday, fueled by increasing optimism that the impending tariffs by Donald Trump may be less severe than anticipated.
The S&P 500 surged by 1.8 percent, while the Nasdaq Composite, known for its tech focus, saw a 2.3 percent rally. Tesla, which had faced recent declines alongside other Big Tech stocks, experienced a remarkable 12 percent surge.
These gains followed the S&P breaking a four-week losing streak last week, hinting at a potential turnaround for US stocks this year. Analysts attribute this positive shift to reports over the weekend suggesting that the White House is considering scaling back some of the tariffs set to go into effect on April 2, referred to as “Liberation Day” by Trump. The President indicated on Friday that there could be flexibility in his approach to imposing reciprocal tariffs on US trade partners.
Market sentiment was further boosted by better-than-expected data from the US manufacturing and services sectors released on Monday. The flash US composite purchasing managers’ index by S&P Global hit a three-month high of 53.5, indicating growth in business activity. The rise was primarily driven by expansion in the services sector, offsetting a contraction in manufacturing activity.
Thierry Wizman, global foreign exchange and rates strategist at Macquarie, highlighted that hopes for a more rational tariff policy were driving the market gains.

As stocks surged, US government bonds saw a sharp decline, with the 10-year Treasury yield rising by 0.09 percentage points to 4.34 percent. The dollar also strengthened by 0.2 percent against major currencies.
Market momentum remained strong even after Trump announced a 25 percent tariff on imports from countries purchasing oil or gas from Venezuela.
Meanwhile, European stocks displayed a more subdued performance, with Stoxx Europe 600 dropping by 0.1 percent and Germany’s Dax closing 0.2 percent lower. London’s FTSE 100 remained flat.
This year, investors have been shifting away from US equities following Trump’s trade policy overhaul and the appointment of Elon Musk to oversee potential government savings.