Wall Street Closes Higher Driven by Tesla Stock

Investors reacted to signs that the Trump administration might adopt a more measured approach to tariffs on U.S. trading partners.

The S&P 500 surged on Monday, reaching its highest level in over two weeks, driven by gains in Nvidia and Tesla, following indications that Donald Trump’s government may take a more cautious approach to tariffs against U.S. trading partners.

On the first trading day of the week, the S&P 500 rose 100.01 points, or 1.76%, to finish at 5,767.57 points, while the Nasdaq Composite gained 404.54 points, or 2.27%, closing at 18,188.59 points. The Dow Jones Industrial Average climbed 597.97 points, or 1.42%, to 42,583.32 points.

President Trump had previously anticipated broad tariffs to take effect on April 2, but it now appears likely that a set of sector-specific tariffs will be excluded, according to weekend reports citing government officials.

Tariff Tantrum

A Trump administration official warned on Monday that the situation was fluid and no final decision had been made.

Investors favored the impacted tech stocks: Nvidia and Advanced Micro Devices rose, while Tesla recovered some of its recent steep losses by surging almost 12%, buoyed by optimism about the potential reduction of U.S. tariffs.

Financial markets have been volatile in recent weeks due to concerns over inflation and a potential economic recession after Trump announced a series of tariffs on major U.S. trading partners, including China, Mexico, and Canada.

S&P 500 Performance

The S&P 500 has rebounded around 4% since its recent low on March 13, but is still down about 6% from its record close on February 19.

Cryptocurrency stocks rose alongside a 4% increase in Bitcoin prices, with gains seen in both MicroStrategy and Coinbase.

ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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