Merchants work on the ground of the New York Inventory Change throughout morning buying and selling on April 14, 2025.
Adam Grey | Getty Pictures
Shares rose in a uneven session on Monday, helped by rally in tech names following a shock U.S. tariff exemption from President Donald Trump.
The Dow Jones Industrial Average added 312.08 factors, or 0.78%, to shut at 40,524.79. The Nasdaq Composite rose 0.64% to finish at 16,831.48, whereas the S&P 500 added 0.79% and settled at 5,405.97. All three indexes at instances traded in unfavourable territory in the course of the turbulent session.
Traders cheered Trump’s exemption of smartphones and computers, in addition to different units and elements like semiconductors, from his new “reciprocal” tariffs, in line with new U.S. Customs and Border Safety steerage issued late Friday.
However Trump and Commerce Secretary Howard Lutnick then prompt Sunday that the exemptions aren’t permanent, stirring up extra tariff uncertainty. Trump said in a Truth Social post that these merchandise are nonetheless “topic to the prevailing 20% Fentanyl Tariffs, and they’re simply shifting to a distinct Tariff ‘bucket.'”
Nonetheless, Apple shares gained 2.2% on the information, whereas Dell jumped practically 4%. The Technology Select Sector SPDR Fund (XLK) added greater than 1%.
“The market believes that the administration might be in some form of retreat from their most-extreme tariff proposal,” mentioned Jed Ellerbroek, portfolio supervisor at Argent Capital Administration. “That is incremental excellent news.”
The Cboe Volatility Index (VIX), often called Wall Avenue’s worry gauge, tumbled greater than 6 factors in Monday’s session. U.S. Treasury yields additionally retreated, offering upward momentum for shares.
These developments come because the “Magnificent Seven” and broader market have come beneath stress within the wake of the president’s tariff announcement earlier this month.
Final week marked one of many most tumultuous trading weeks on record for the Avenue, with the Cboe Volatility Index spiking above 50. Shares soared on Wednesday after Trump introduced a 90-day reprieve for various his new tariff charges, ensuing within the S&P 500’s third-biggest one-day gain since World Warfare II.
Whereas shares superior final week, all three main averages are nonetheless down sharply for the reason that so-called reciprocal tariffs had been first introduced on April 2. The S&P 500 has dropped 4.7%, whereas the Nasdaq and Dow have fallen about 4.4% and 4%, respectively.
“The query a number of buyers are asking, ‘Is that this it – is the underside in?'” mentioned Dave Sekera, chief U.S. market strategist at Morningstar. “It is actually potential, however I do not suppose so.”
