Stock market today: Dow, S&P 500, Nasdaq jump amid hopes Trump will soften next tariff blow

US stocks surged on Monday as investors welcomed reports that the next wave of President Trump’s tariffs will be more targeted than threatened.

The S&P 500 (
^GSPC
) rose nearly 1.5% on the heels of the broad benchmark
snapping a four-week losing streak
. The Dow Jones Industrial Average (
^DJI
) advanced about 1.2%, while contracts on the tech-heavy Nasdaq Composite (
^IXIC
) led the gains, up more than 2%.

Markets are weighing signs that
proposed US reciprocal tariffs
will be narrower than expected when Trump announces them on April 2, per reports from
Bloomberg
and
The Wall Street Journal
. That’s providing some relief from fears that an escalating trade war will drive up inflation and further slow the economy.

The yield on the 10-year Treasury (
^TNX
)
rose about four basis points
to 4.29% as worries about a tariff hit to growth and global trade eased and appetite for risk sharpened.

Tesla’s (
TSLA
) stock rallied as markets assessed signs Trump won’t unveil tariffs on the auto sector on April 2, as anticipated. Tech stocks more broadly got a bid after Jack Ma’s Ant said it
expects a hefty cut to AI costs
using alternative chips to Nvidia’s (
NVDA
).

US economic output moved higher in March but still reflected an overall growth trajectory for the US economy that was slower than initially hoped in the first quarter, according to
S&P Global’s flash US composite PMI
.

The highlight of the week’s
economic data
is the release of February’s Personal Consumption Expenditures Index, the Federal Reserve’s preferred inflation gauge, on Friday.

On the earnings front, quarterly results from Lululemon (
LULU
), GameStop (
GME
), and Dollar Tree (
DLTR
) are due this week.

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