- Stocks surged on March 24, 2025, amid reports that President Trump may scale back his tariff plans, easing fears of a global trade war.
- The Dow Jones Industrial Average rose 1.3%, while the S&P 500 and Nasdaq Composite gained 1.6% and 2%, respectively.
- Investors remain cautious as Trump’s April 2 tariff deadline approaches, despite Federal Reserve Chair Jerome Powell’s reassurance that any negative impacts will likely be short-lived.
Stocks experienced a significant boost on Monday, March 24, 2025, as reports emerged suggesting that President Donald Trump might refrain from implementing some of his expansive tariff plans. This development has sparked optimism that the United States could avoid triggering a full-scale global trade war, providing a much-needed lift to investor sentiment.
The Dow Jones Industrial Average climbed approximately 560 points, or 1.3%, while the S&P 500 rose by 1.6%. The tech-heavy Nasdaq Composite also saw a notable increase, gaining roughly 2%. Among individual stocks, Tesla, which had endured nine consecutive weeks of declines, surged more than 9%, building on its gains from the previous Friday. Meta and Nvidia each advanced about 3%, further contributing to the day’s positive momentum.
Despite the rally, investors remain on edge as Trump’s April 2 deadline for reciprocal tariffs looms. The President has stated that the tariffs are intended to target countries that impose duties on U.S. imports. However, recent reports from the Wall Street Journal and Bloomberg News suggest that the scope of these tariffs may be narrower than initially anticipated. According to these sources, some industry-specific duties could be excluded, and certain nations might be exempted altogether. Both outlets emphasized that the situation remains fluid, with the potential for further changes.
Trump appeared to ease tensions on Friday when he hinted at potential “flexibility” in his tariff plan, a statement that helped push major stock indices into positive territory for the day. Tobin Marcus of Wolfe Research noted in a client memo that omitting sectoral tariffs from the April 2 package would significantly reduce its overall scale and impact. While the potential for reciprocal tariffs remains a concern, Marcus suggested that the market reaction might be less severe than initially feared.
Investor anxiety has been further fueled by weakening consumer sentiment data and concerns about the U.S. economy’s stability. The S&P 500 had previously flirted with correction territory in late February, reflecting heightened uncertainty. However, Federal Reserve Chair Jerome Powell offered a glimmer of hope last week, stating that any adverse effects from Trump’s tariffs are likely to be short-lived. Investors will be closely watching key economic indicators this week, including Tuesday’s consumer confidence reading and Thursday’s initial weekly jobless claims figures.
Last week marked a much-needed rebound for stocks, with the S&P 500 ending Friday in positive territory and avoiding a fourth consecutive weekly decline. Despite this uptick, the index remains 7.8% below its record high. Similarly, the Nasdaq Composite snapped a four-week losing streak but is still 12% off its peak. As the market navigates these uncertain waters, investors are cautiously optimistic but remain vigilant about the potential impacts of Trump’s trade policies.