Market Recap: Stocks Surge on Hopes of Softer Tariffs, Tech Leads Rally
Major Indexes Close Sharply Higher
Wall Street kicked off the week with a robust rally on Monday, March 24, 2025, as investors reacted positively to reports suggesting that the Trump administration might implement a more targeted approach to its planned reciprocal tariffs. The major stock indexes posted significant gains, with technology stocks leading the charge.
The S&P 500 surged 100.01 points, or 1.8%, to close at 5,767.57.
Tariff Concerns Ease, Boosting Market Sentiment
The market’s upward momentum was primarily driven by reports from The Wall Street Journal and Bloomberg News, indicating that the Trump administration’s April 2 reciprocal tariffs might be narrower in scope than initially anticipated. These reports suggested that some industry-specific duties could be excluded, and certain nations might be exempt from the tariffs altogether.
Tobin Marcus of Wolfe Research commented, “Omitting the sectoral tariffs from the April 2nd package significantly reduces both its aggregate scale and the maximum rate on targeted sectors, given that all of Trump’s tariffs to date have been designed to stack.”
Tech Stocks Lead the Rally
Technology stocks were at the forefront of Monday’s rally, with several big names posting substantial gains:
1. Tesla (TSLA): Up more than 7%, breaking a nine-week losing streak
2. Meta Platforms (META): Climbed about 4%
3. Nvidia (NVDA): Rose nearly 2%
4. Advanced Micro Devices (AMD): Gained roughly 2.7% in premarket trading
Other tech giants such as Apple (AAPL), Amazon (AMZN), and Alphabet (GOOGL) also saw their shares rise during the session.
Notable Stock Movements
Several other stocks made significant moves on Monday:
– Pinterest (PINS): Added nearly 5% following an upgrade to buy from neutral at Guggenheim
– ViaSat (VSAT): Gained 4% after Deutsche Bank upgraded the satellite stock to a buy rating from hold
– AZEK (AZEK): Soared 23% after cement manufacturer James Hardie Industries announced plans to acquire the outdoor products manufacturer in a cash and stock deal totaling around $9 billion
Economic Data and Upcoming Events
Investors are now turning their attention to a busy week of economic data releases. The S&P Global flash services index for March came in stronger than expected at 54.3, up from 51 in February and beating the Dow Jones consensus estimate of 51.5.
Key economic events to watch this week include:
1. Case-Shiller Home Price Index (Tuesday)
2. Consumer Confidence report (Tuesday)
3. New Home Sales data (Tuesday)
4. Personal Income and Outlays report, including the Fed’s preferred inflation gauge – core PCE (Friday)
Market Outlook
While Monday’s rally provided a welcome respite for investors, market participants remain cautious about the potential impact of tariffs on inflation, consumer spending, and economic growth. The upcoming economic data releases will be closely watched for signs of how the U.S. economy is faring amidst these trade tensions.
As the April 2 deadline for reciprocal tariffs approaches, investors will likely continue to monitor developments in trade policy and their potential effects on various sectors of the economy. The market’s reaction to these events will be crucial in determining the short-term direction of stocks in the coming weeks.
